| Thu 17 Nov 2011, 9:02 | | NEP - New Europe Property Investments Plc - Proposed Development |
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NEP
NEP
NEP - New Europe Property Investments Plc - Proposed Development
New Europe Property Investments plc
(Incorporated and registered in the Isle of Man with registered number 001211V)
(Registered as an external company with limited liability under the laws of
South Africa, registration number 2009/000025/10)
AIM share code: NEPI
BVB share code: NEP
JSE share code: NEP
ISIN: IM00B23XCH02
("NEPI" or the "Company")
PROPOSED DEVELOPMENT
The Company is pleased to announce that it has together with its wholly-owned
subsidiary NE Property Cooperatief U.A. ("NEPC") concluded an Investment
Framework Agreement with Kitma Holdings Limited ("Kitma") and Grenoui Holdings
Limited ("Grenoui")(collectively, "the sellers") in terms of which NEPC will
acquire a 50% shareholding in a development company, S.C. Axa CD Real Estate
Development S.R.L. ("the development company") which in turn holds 99.9% of S.C.
Vic City S.R.L. ("Vic City").
It is proposed that the development company will develop a 56,000 square metre
shopping centre called Victoria City Centre ("the proposed development"). The
land on which the proposed development is proposed to be built is owned by Vic
City.
In consideration for receiving the 50% shareholding in the development company,
NEPC has agreed to place EUR5 million in escrow.
The proposed development is subject to the shareholders of the development
company, being NEPC, Kitma and Grenoui, approving a project development plan
("the project development plan") at a general meeting ("the general meeting") of
the shareholders of the development company on 20 December 2011.
In the event that the project development plan is not approved by its
shareholders, NEPC`s 50% shareholding in the development company will be
returned to the sellers and the EUR5 million placed in escrow will be returned
to NEPC.
The acquisition of the 50% shareholding in the development company by NEPC is
not categorisable in terms of the Listings Requirements on the JSE Limited.
Further announcements in relation to the proposed development will be made once
the project development plan has been considered at the general meeting.
The site of the proposed development is located in the Northern part of
Bucharest, an area which is under-serviced, and benefits from excellent
accessibility both by car and public transportation. There is a metro stop in
front of the site and direct metro access to the proposed development. Further
public transport is available through bus, tram and trolley lines that have
their stations within 50 metres from the site of the proposed development.
17 November 2011
For further information please contact:
New Europe Property Investments plc +40 74 432 8882
Martin Slabbert
Nominated Adviser and Broker +44 20 7131 4000
Smith & Williamson Corporate Finance Limited
Azhic Basirov/Siobhan Sergeant
JSE sponsor +27 11 283 0042
Java Capital
Romanian advisor +40 21 222 8731
SSIF Intercapital Invest SA
Razvan Pasol
Date: 17/11/2011 09:02:32 Produced by the JSE SENS Department.
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