7th Apr 2008 10:20
Dragon-Ukrainian Prop. & Dev. PLC07 April 2008 07 April 2008 Dragon - Ukrainian Properties & Development Plc (the "Company" or "DUPD") Acquisition of a gated community project in Vita Poshtova Dragon - Ukrainian Properties & Development Plc, one of the largest AIM-listedreal estate investment with an exclusive focus on Ukraine, managed by DragonCapital Partners Limited ("DCP"), is delighted to announce its acquisition of aproject (the "Project") which entails the development of an upscale residentialcottage community on a 31.9 hectare land plot in Vita Poshtova, from GlobalSolutions, a local land developer. Through the acquisition of the Project, DUPDsecured freehold rights on a 16.2 hectare land plot and 49-year leasehold rightson an adjacent 15.7 hectares landplot, as well as a set of preliminary projectapprovals which allow for a prompt start of development works. DUPD's total commitment for the acquisition of the Project is US $14 million, ofwhich US $10.4 is disbursed to the seller. The balance of funds will be paid tothe seller upon completion of certain milestones, including conversion tofreehold of approx. 4 hectares of the leased land, construction of an accessroad and building of a gas pipeline to the land plot, all expected by May-June2008. This Project is the second investment of DUPD in the sector of out-of-towncottage communities near Kyiv, following the Pine Forest Riverside Estateproject, currently under construction. Highlights: * The Project has passed the preliminary development stage with initial masterplan of the community approved, technical conditions for gas and water received, and working projects for road and gas pipe construction approved. * The total acquisition price translates to US $44 per sqm of land, while the current retail prices in the area vary from US $80-$120. Moreover, payment of US $ 3.7 million of the total price to be paid to the seller, is conditional upon the seller concluding certain improvements, such as the building of a new bridge across a narrow river, as well as obtaining certain permits and working documentation to facilitate further development. * The Project envisions construction of an upscale community comprising of up to 170 cottages supported by significant infrastructure including a conveniance store, sports facilities and kids playgrounds, child care room, restaurant, BBQ zones, car wash and administrative building. * The Project is located only 9 km from the city border and 22 km away from the city centre. The approach to the site is via the newly reconstructed Odesa highway (5km) connecting to a good quality asphalt road (4km), providing for convenient and fast transport communication with Kyiv. * The land plot is placed on a picturesque hill bordering a forest area with a small river and a pond nearby. Given its close proximity to the city, this shall make the Project highly attractive for potential buyers. * The Directors expect the project to be fully completed in 2010. Aloysius Van der Heijden, Chairman of DUPD said: "The popularity of out-of-townresidences is booming in Kyiv these days as middle-class is growing and the citycentre becomes more and more congested. This is the second investment of DUPD in the sector of residential cottagecommunities near Kyiv. We are very pleased with the progress on our firstcottage development, in the north of Kyiv, and are excited to add Vita Poshtovato our portfolio". Chris Kamtsios, Managing Director of DCP said: "Vita Poshtova ideally suits ourintentions to expand our development activities in the segment of upscale gatedcommunities near Kyiv. The land plot combines convenient access with verypicturesque immediate surroundings, boasts significant size for a large scaledevelopment and is located in the opposite direction from the city to ourexisting project in Kyiv Sea. We have been carefully selecting the location for our next project in the sectorand now feel highly confident about this particular development. With suchunique location, we should be able to deliver a strong product to meet marketdemand." --- ends --- For further information, please contact: Dragon Ukrainian Properties & Development Plc www.dragon-upd.com Tomas Fiala +380 44 490 7120 Dragon Capital Partners Limited Chris Kamtsios +380 44 490 7120 Zimmerman Adams International Ray Zimmerman/Jonathan Evans +44 20 7060 1760 Notes to Editors About Dragon- Ukrainian Properties & Development Plc DUPD is an Isle of Man incorporated company formed to invest in the developmentof new commercial properties and re-development of existing properties inUkraine which offer the prospect of attractive returns to its shareholders.Having raised US$ 208 million at US$2 per share, DUPD's ordinary shares wereadmitted to trading on the AIM market of the London Stock Exchange on 1 June2007. About Dragon Capital Partners DCP is a subsidiary of Dragon Asset Management, the asset management arm ofDragon Capital. Dragon Capital is a leading Ukrainian financial institutionspecialising in the provision of investment banking, securities trading, assetmanagement and private equity services. Dragon Capital has received the "BestEquities House in Ukraine" award in 2002, 2004, 2005, 2006 and 2007 by "Euromoney", a leading financial journal. DCP professionals combine extensive local knowledge and expertise gained throughsubstantial investment activity in the Ukrainian private equity market accross awide spectrum of industries, including real estate. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DUPD.L