Secure Prop Regulatory News (SPDI)

5 Aug 2009 10:44



For immediate release

5 August 2009

AISI Realty Public Limited

"AISI" or "the Company"

AISI resigns a 10 year pre-let on Terminal Brovary with UVK

AISI, a property investment company focusing on development projects and related investments in Ukraine, is pleased to announce that it has renewed an agreement with UVK, a leading Ukrainian logistics operator, for the pre-letting of Brovary Logistics Park, the Company's most advanced commercial development.

The agreement covers a 10-year lease term commencing January 2010 for the entire development comprising approximately 49,180 sq. m of warehousing space at rental values that are in line with current market rates. The new rental rate per sq.m. per month is approximately 30% lower than the rate in last year's agreement reflecting prevailing market conditions in the property sector.. In addtion,  AISI has made an arrangement with the tenant to extend a $3m penalty payment per last year's lease contract  for non-delivery in July 2009, until 1 January,2010. 

DTZ Kiev B.V. was the exclusive agent for AISI on this agreement.

Terminal Brovary, located approximately 27 kilometres from Kiev, will be one of Ukraine's first Class 'A' logistics warehouses and is the first of four  major commercial, retail and residential projects undertaken by the Company in Ukraine.

AISI has a 100% shareholding in "Terminal Brovary". Construction work at the site began in November 2007 and is on schedule for sole occupancy by UVK in or before January 2010.

Beso Sikharulidze, a Director of AISI, said: "We are pleased to be able to fully let our flagship commercial development, Brovary Logistics Park, to UVK, a leading logistics company in Ukraine, in a difficult market environment. This is a key milestone in the Company's long-term development and will generate substantial value for our shareholders as the Ukrainian property sector benefits from strong long-term growth drivers."

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