Kimberly Enterprises Regulatory News (KBE)

16 Aug 2006 07:00

Engel East Europe N.V.16 August 2006 ENGEL EAST EUROPE N.V. New project of 550 residential units in Bucharest, Romania Engel East Europe N.V. ("Engel East Europe" or "the Company"), the AIM-listedCentral and Eastern European ("CEE") residential property developer (EEE:L), ispleased to announce that it has signed an agreement for the purchase of 3adjacent plots in Bucharest, Romania, for the development of approximately 550residential units. The Company estimates that the projected sales of the projectwill total approximately €60 million. The Company intends to develop a residential project of approximately 55,000sqmon the acquired plots with a total land area of 23,000sqm. The project is in asuperior lakeside location, within the prestigious Pipera neighbourhood. The total purchase price of the land is approximately €4.6 million. Of this,approximately €1.5 million was paid upon the signing of a final agreement forone plot, with a planning permit of approximately 7,500sqm. The remaining €3.1million will be paid upon receipt of the planning permit for the two additionalplots. If the planning permit is not issued by the seller within 60 days, theCompany will be awarded a 50% discount, or given the option to withdraw from thedeal. Engel East Europe is in continual negotiation for the purchase of land for thedevelopment of additional projects throughout the CEE Region. Jacob Engel, founder and Executive Chairman, said: "We are delighted to once again announce this new development project. This isEngel's third project in Romania, following two recent MOU announcements.Romania is a market which we have always forecast as one of the most promisingareas for residential projects and therefore part of our main focus. This newest acquisition complements our vision of further expanding ouractivities in both existing and new markets, taking full advantage of theconsiderable growth opportunities for residential property development in theCEE region," Enquiries Engel East Europe N.V.Nir Netzer, Finance Director+972 9970 7024 Citigate Dewe RogersonSally Marshak / George Cazenove / Hannah Seward+44 20 7638 9571 Notes to editors Engel East Europe is an international residential property developerincorporated in The Netherlands. The Company operates in Central and EasternEurope (the "CEE Region") and has various developments in Hungary, the CzechRepublic, Poland, Bulgaria, Romania and Serbia & Montenegro as well asoperations in Germany and Canada. Engel is currently involved in thedevelopment of approximately 12,000 residential units and is in negotiations topurchase land for the development of additional projects throughout the CEERegion. END This information is provided by RNS The company news service from the London Stock Exchange