Kimberly Enterprises Regulatory News (KBE)

8 Jan 2007 09:36

Engel East Europe N.V.08 January 2007 8 January 2007 PRESS RELEASE ENGEL EAST EUROPE N.V. €15M investment by International Fund Engel East Europe N.V. ("Engel" or "the Company"), the AIM-listed Central andEastern European ("CEE") residential property developer (EEE:L), is pleased toannounce that it has signed a Terms of Agreement ("Agreement") with aprestigious international investment fund specialising in emerging markets ("theFund"). The principle terms of the Agreement represent an improvement to thosepreviously offered by another fund which was announced on 13 July 2006. According to the Agreement, the Fund will invest in a company ("SPV") that owns95% of the Engel Marina Dorcol ("Engel Marina") project in the Belgrade Marina,announced on 23 February 2006, and the parties are scheduled to enter intodefinitive agreements following the due diligence period. Engel Marina won the Belgrade Marina Project following a running bid by theMunicipality of Belgrade for the development of the mixed-use project totaling agross building area of 76,000m2. Negotiations are under way to enlarge the scopeof the project. The development will include approximately 600 residentialunits, as well as a marina, offices, a shopping centre, restaurants and coffeeshops situated on the banks of the Danube River. According to the Agreement, the Fund will pay €10 million for 50% of the SPV(47.5% of the project) which will be paid in three equal installments to be madeevery six months. The Fund will invest an additional amount according to theproject's needs, estimated at €5 million within the current scope of theproject, in addition to Engel's own investment in the project. The Fund's shareof cash distributions from the project will range between 57% and 19% accordingto the performance of the project. Engel will manage the project and will be entitled to a management fee of 5% ofthe project costs. Commenting on the transaction, Jacob Engel, ExecutiveChairman, said: "This improved agreement with a prestigious fund is consistent with theCompany's strategy of creating value and minimising risk in real estatedevelopment. The Engel Marina project is one of the largest and most prestigious developmentprojects ever undertaken in Serbia. We are confident that its unique location onthe banks of the Danube River, together with Engel's management and expertise andthe backing of a prestigious and professional Fund, will result in a verysuccessful project." Enquiries Bankside Consultants Simon Bloomfield/Marc Cohen/Andy Harris 020 7367 8888 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 the "CEE Region" and has various developments in Hungary, the CzechRepublic, Poland, Bulgaria, Serbia and Romania, as well as operations in Germanyand Canada. This information is provided by RNS The company news service from the London Stock Exchange