Kimberly Enterprises Regulatory News (KBE)

23 Feb 2006 10:12

Engel East Europe N.V.23 February 2006 23 February 2006 ENGEL EAST EUROPE N.V. SUCCESSFUL BID TO DEVELOP A SUBSTANTIAL AND PRESTIGIOUS PROJECT ON THE DANUBE IN THE CITY OF BELGRADE Engel East Europe N.V. ("Engel" or "the Company"), the AIM-listed Central andEastern European residential property developer (EEE:L), is pleased to announcethat it has won a bidding round run by the Municipality of Belgrade, to purchasea development site in the city with a total area of approximately 25,700m2. Thetotal purchase price is approximately €21 million which includes the cost of theland, the landscaping fees and the land leasing for the construction period. The Company intends to develop a mixed-use project on the acquired land with atotal gross building area of 76,000m2. The development will includeapproximately 600 residential units, as well as a marina, offices, shoppingcentre, restaurants and coffee shops on the banks of the Danube River. TheCompany estimates that the total projected sales of the development will beapproximately €160 million. The acquisition of the site will be made by a local subsidiary, Engel MarinaDorcol, which is a 95% owned subsidiary of Engel. Engel Marina Dorcol will payfor the land in stages related to the issuing of building permits for eachstage. Engel is in negotiation for purchasing additional parcels of land throughout theCEE Region for the construction of thousands of residential units. Jacob Engel, founder and Executive Chairman, said: "We are delighted to be announcing this deal in Belgrade which we believe to beone of the largest and most prestigious development projects ever undertaken inSerbia and Montenegro. We are confident that the unique location of the venturein the city - on the banks of the Danube River - and Engel's high standards ofconstruction, related facilities and management will make this a very successfulproject. This Project not only makes Engel one of Serbia and Montenegro's most importantdevelopers but also underlines the Company's continued commitment to the CEEregion." Enquiries Citigate Dewe Rogerson Sally Marshak/George Cazenove/Hannah Seward +44 20 7638 9571 Notes to editors Engel East Europe was admitted to AIM in December 2005 and is an internationalresidential property developer incorporated in The Netherlands. The Companyoperates in Central and Eastern Europe (the "CEE Region") and has variousdevelopments in Hungary, the Czech Republic, Poland and Bulgaria, as well asoperations in Germany and Canada. Engel is currently involved in thedevelopment of approximately 11,000 residential units and is in negotiations topurchase land for the development of thousands of additional units throughoutthe CEE Region. This information is provided by RNS The company news service from the London Stock Exchange