6 Aug 2015 07:00
Kimberly Enterprises N.V.
("Kimberly" or the "Company")
Agreement with Heitman
The Board of Kimberly, the AIM-quoted Eastern European residential property developer (KBE.L), is pleased to announce that the Company has reached an agreement with funds managed by Heitman LLC ("Heitman") according to which the Company will waive its share of a funds distribution generated from Arces International B.V. ("Arces") and ENMAN B.V. ("ENMAN") amounting to EUR 1.1 million (out of an aggregate distribution of EUR 3.5 million), which will instead all be paid to Heitman. In return Heitman will transfer to the Company all its rights in Arces and ENMAN.
Arces and ENMAN are both joint venture companies, which own and develop land in Eastern European countries, currently jointly owned by Heitman and the Company.
Following the transaction the Company will own 100% of both Arces and ENMAN and will consolidate both companies in its consolidated financial statements. The Company estimates that it will recognise a maximum loss of EUR 0.6 million as a result of the transaction. The Company expects that the total future cash flow generated from asset sales by Arces and ENMAN will increase by approximately EUR 3.3 million as a result of the transaction (EUR 2.2 million net after allowing for the above EUR 1.1 million cost of the transaction).
The information contained in this announcement regarding projected recognition of a loss and changes in cash flows of the Company constitute forward-looking statements. Such statements are based on the current expectations and certain assumptions of the Company's management, many of which are beyond the Company's control. Actual results or performance may (negatively or positively) vary materially from those described in the relevant forward-looking statement.
For further information, please contact:
Kimberly Enterprises N.V. | |
Assaf Vardimon | +31 20 778 4141 |
Cairn Financial Advisers LLP (Nomad) | |
Sandy Jamieson | +44 207 148 7900 |