30th Dec 2005 07:00
Engel East Europe N.V.30 December 2005 30 December 2005. PRESS RELEASE ENGEL EAST EUROPE N.V. ("Engel" or the "Company") Financial agreement worth up to €26.4m with the Heitman Group Engel East Europe N.V., the AIM-listed Central and Eastern European residentialproperty developer (EEE:L), is pleased to announce that it has signed anagreement with an affiliate of the Heitman Group ("Heitman") which will investin a number of the Company's residential developments, including currentprojects as well as future projects yet to be acquired. Heitman's investments in the projects, including equity investments in a jointsubsidiary that will develop the projects and including development fees to theCompany, will total up to €26.4 million. The Company's share in the profits of the projects will vary between 50 and 60per cent, depending on the financial results of each project. In addition, theCompany will manage the development of the projects, for a fee equal to 5% oftotal costs. The investments by Heitman will be made in stages, with €720,000 paid uponexecution of the agreement, and a total of €10 million will be invested byJanuary 16, 2006. Additional investments will be made as required for theprojects. All of the equity investments required by the joint projects will beprovided by Heitman alone; up to a total of €22.4 million. Commenting on the transaction, Jacob Engel, Executive Chairman, said "Following our successful flotation on AIM, I am delighted to have signed anagreement with Heitman which is consistent with the Company's strategy of fixingcosts and minimising risk in real estate development which also exploits themanagement team's experience in identifying potential development sites withrelatively low land costs and high profit margins". EnquiriesCitigate Dewe RogersonGeorge Cazenove+44 7834 767854 Notes to editors Engel East Europe listed on AIM in December 2005 and is an internationalresidential property developer incorporated in The Netherlands. The Companyoperates in Central and Eastern Europe (the "CEE Region") and has variousdevelopments in Hungary, the Czech Republic, Poland and Bulgaria, as well asoperations in Germany and Canada. Engel East Europe is currently involved inthe development of approximately 10,000 residential units and is in negotiationsto purchase land for the development of thousands of additional units throughoutthe CEE Region. The Heitman Group is a American-based group of real estate investment funds.Another affiliate of Heitman currently cooperates with the Company inresidential real estate projects in Central Europe. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kimberly Enterprises