23rd Jul 2008 08:54
FOR IMMEDIATE RELEASE 23 July 2008
Engel East Europe N.V.
Engel East Europe N.V. ("the Company") announces that it has decided not to proceed with the Gorna Banya project to develop 430 residential units in Sofia, Bulgaria (the "Project").
The Company's share in the estimated sales value was €17 million and construction was scheduled to start in the second half of 2008.
The Company holds a 40 per cent interest in the Project through a joint venture ("the Joint Venture") with an affiliate of the Heitman Group which holds the other 60 per cent. The Joint Venture had entered into an agreement with the land owner, whereby the land owner retained an interest in the land but ownership of the construction rights and buildings erected on the land would be transferred to the Joint Venture.
The decision not to proceed with the Project follows the failure of the land owner, despite being granted an extension, to fulfil certain contractual obligations to the Joint Venture.
The Company's share of the costs incurred by the Project to date is approximately €0.25 million which will be written off in 2008.
ENDS
Enquiries:
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Engel East Europe N.V. |
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Eitan Padan |
Tel: +972 (9) 9707001 |
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Sam Salman |
Tel: +1 (646) 2142000 |
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Samuel Hibel |
Tel: + 972 (9) 9707004 |
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Libertas Capital Corporate Finance Ltd |
Tel: +44 (0) 20 7569 9650 |
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Sandy Jamieson |
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Bankside Consultants |
Tel: +44 (0) 20 7367 8888 |
|
Simon Bloomfield |
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