The Company is pleased to announce that it has together with its wholly-owned subsidiary NE Property Cooperatief U.A. (“NEPC”) concluded an Investment Framework Agreement with Kitma Holdings Limited (“Kitma”) and Grenoui Holdings Limited (“Grenoui”) (collectively, “the sellers”) in terms of which NEPC will acquire a 50% shareholding in a development company, S.C. Axa CD Real Estate Development S.R.L. (“the development company”) which in turn holds 99.9% of S.C. Vic City S.R.L. (“Vic City”).
It is proposed that the development company will develop a 56,000 square metre shopping centre called Victoria City Centre (“the proposed development”). The land on which the proposed development is proposed to be built is owned by Vic City.
In consideration for receiving the 50% shareholding in the development company, NEPC has agreed to place EUR5 million in escrow.
The proposed development is subject to the shareholders of the development company, being NEPC, Kitma and Grenoui, approving a project development plan (“the project development plan”) at a general meeting (“the general meeting”) of the shareholders of the development company on 20 December 2011.
In the event that the project development plan is not approved by its shareholders, NEPC’s 50% shareholding in the development company will be returned to the sellers and the EUR5 million placed in escrow will be returned to NEPC.
The acquisition of the 50% shareholding in the development company by NEPC is not categorisable in terms of the Listings Requirements on the JSE Limited.
Further announcements in relation to the proposed development will be made once the project development plan has been considered at the general meeting.
The site of the proposed development is located in the Northern part of Bucharest, an area which is under-serviced, and benefits from excellent accessibility both by car and public transportation. There is a metro stop in front of the site and direct metro access to the proposed development. Further public transport is available through bus, tram and trolley lines that have their stations within 50 metres from the site of the proposed development.