15th May 2006 12:19
Engel East Europe N.V.15 May 2006 15 May 2006 ENGEL EAST EUROPE N.V. Agreement to buy out a 36% partner in two projects in Prague, Czech Republic. Engel East Europe N.V. ("Engel" or "the Company"), the AIM-listed Central andEastern European residential property developer (EEE:L), is pleased to announcethat its subsidiary, Arces International B.V., (or "Arces") has signed anagreement to purchase a 36% share held by affiliates of Austrian Volksbank A.G.,an Austrian Bank, in two of the Company's existing project companies, which owntwo projects at Cervenemu Vrchu and Safranka in Prague, for approximately €1.5million. Following the purchase, Arces will own 100% of each project company whichtogether consist of a total of approximately 710 residential units. An affiliateof the Heitman Group ("Heitman") is a 50% partner in Arces. The Company's management estimates that the sales from the two projects will beapproximately €61 million. Engel is in negotiation for purchasing additional parcels of land throughout theCEE Region for the construction of thousands of residential units. Jacob Engel, founder and Executive Chairman, said: "We are delighted to announce this agreement which will increase our share inthe existing projects in the Czech Republic, as well as in the projectedrevenues and the projected profits of these two promising projects". Enquiries Citigate Dewe Rogerson Sally Marshak/Hannah Seward +44 20 7638 9571 Notes to editors Engel listed on AIM in December 2005 and is an international residentialproperty developer incorporated in The Netherlands. The Company operates inCentral and Eastern Europe (the "CEE Region") and has various developments inHungary, the Czech Republic, Poland, Bulgaria and, as announced lately, inSerbia, as well as operations in Germany and Canada. Engel is currentlyinvolved in the development of approximately 11,000 residential units and is innegotiations to purchase land for the development of thousands of additionalunits throughout the CEE Region. The above mentioned projects form part of JV I with Heitman, which was signed inDecember 2003. Engel signed a JV II agreement with an affiliate of Heitman inDecember 2005. Heitman are in the process of investing in a number of theCompany's residential developments, including current projects as well as futureprojects yet to be acquired. Heitman's investments in Engel projects will totalup to €26.4 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Kimberly Enterprises