2nd Apr 2008 07:01
Dragon-Ukrainian Prop. & Dev. PLC02 April 2008 2 April 2008 Dragon - Ukrainian Properties & Development Plc (the "Company" or "DUPD") Investment into acquisition and development of a mixed-use project in Obolon Dragon - Ukrainian Properties & Development Plc, one of the largest AIM-listedreal estate investment companies focused on investments in Ukraine, managed byDragon Capital Partners Limited ("DCP"), is delighted to announce that itswholly owned subsidiary, Startide Ltd, has acquired 96.6% of shares of JSC "Budynok Pobutu Obolon" ("Budynok Pobutu" or the "Property"), a consumerservices company located in Obolon, a large residential district of Kyiv withpopulation of approximately 300,000 people. The Property consists of a 9,600 sqm9-storeyed administrative building located on a 1.07 ha land plot on the centralsquare of this highly populous district, next to the Minska metro station. Theunique location of the Property makes it highly attractive for development of anew mixed-use complex consisting of residential and retail units. DUPD's total commitment to acquire the Property and to facilitate furtherdevelopment of the land plot is US $16.2 million. This project is in line with the investment strategy of DUPD, having its corefocus on the development and re-development of commercial and residentialproperties in Kyiv and main regional centers of Ukraine. Highlights of the Property: • The Company has obtained control over the Property through acquisition of a 96.6% shareholding in Budynok Pobutu, from a number of private and institutional shareholders. • The Property is situated in a unique location, on the crossroads of two major streets, next to the exit from the metro, adjacent to the central square of the district and near a prestigious area of modern high-rise housing. A small part of the land plot is occupied by McDonald's restaurant which generates significant pedestrian traffic. • The directors believe that the site is highly attractive for the development of a large mixed-use complex with the total area of 45,000- 50,000 sqm. The results of the highest and best use study of the land plot (currently underway) will be used to finalise the concept for this development. The directors believe that full development of this project may take 3-4 years. • The Company has entered into negotiations regarding joint development of the land plot with a number of leading Ukrainian and international property developers. Aloysius Van der Heijden, Chairman of DUPD said: "We are very glad that we havemanaged to secure such a unique land plot for development in the capital city ofUkraine. This is probably the best location in Obolon, which is a very popularresidential district in the city. Chris Kamtsios, Managing Director of DCP said: "We are proud to announce thisacquisition, on which our team has worked for 4 months. It is important to notethat this property was not on the open market but rather sourced through ourproprietary network of contacts. This has allowed us to negotiate an attractiveacquisition price for our shareholders and thus, increase the potentialinvestment returns on this project. Obolon is a popular and fast growingdistrict in Kyiv both in residential and commercial development, and we areexcited to add a project on the central square of this district to theinvestment portfolio of DUPD." --- ends --- For further information, please contact: Dragon Ukrainian Properties & Development Plcwww.dragon-upd.com Tomas Fiala: +380 44 490 7120 Dragon Capital Partners LimitedChris Kamtsios: +380 44 490 7120 Zimmerman Adams International - Nominated Adviser and BrokerRay 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