Dragon-Ukrainian Prop. & Dev. PLC Disposal (8772U)
October 27 2017 - 10:18AM
UK Regulatory
TIDMDUPD
RNS Number : 8772U
Dragon-Ukrainian Prop. & Dev. PLC
27 October 2017
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No. 596/2014.
27 October 2017
Dragon-Ukrainian Properties & Development plc
("DUPD" or the "Company" and together with its subsidiaries, the
"Group")
Sale of Obolon Residences project
Dragon-Ukrainian Properties & Development plc, a leading
investor in the real estate sector in Ukraine, is pleased to
announce that it has agreed to sell the Company's remaining
interest in the Obolon Residences project to Cheriton Overseas
Limited, an unrelated party. This is the same party that acquired
the rights to develop phase 2 of the Obolon Residences project in
February 2015.
The consideration of USD 9 million is payable in cash in four
instalments with the final instalment due by 30 April 2018.
In the short term, the monies will be retained for working
capital purposes.
The sale of the Company's interest in Obolon Residences is
through the sale of the rights and shares of certain companies that
own and manage the Obolon Residences project, including the unsold
inventory in relation to phase one, as well as assignment to
Cheriton Overseas Limited of all outstanding inter-company loans
balances that were due to the Company and its retained
subsidiaries.
The corporate rights of the company that owns the Ukrainian
entity developing the Obolon Residences project will be pledged to
the Company until the final instalment of the consideration is
paid.
Following this announcement, the Company and DCM Limited will
have no ongoing responsibilities to the development or sales &
marketing of the Obolon Residences project.
The fair value of the Obolon Residences project as at 30 June
2017 (fair value of loan receivables as referred to in the
unaudited financial statements of the Company) was USD 15.3
million, and as such a loss on disposal of USD 6.3 million will be
recorded. The loss for the year ended 31 December 2016 for the
Company's investment in Obolon Residences was USD 949K being the
fair value loss.
As set out in the 1 December 2016 announcement, as a result of
the sale of the Obolon Residences project, the management fee
payable to DCM Limited will be reduced to US$1.00 million per
annum, and accordingly the management fee for the year ending 31
December 2017 will be reduced on a pro rata basis from the date of
this announcement.
The Company's investing policy states that the Board will seek
to return to shareholders the net proceeds of property realisations
subject to retention of funds necessary for the financing of the
remaining portfolio and short-term general working capital
purposes. Given the instalment basis of the consideration, the
Board has decided that an immediate distribution to shareholders is
not appropriate at this stage but will consider this matter in due
course.
Mark Iwashko, the Chairman, stated:
"We had previously taken the decision to proceed with developing
phase 3, however, we were also mindful of alternative options to
monetise our investment in the Obolon Residences project. Whilst we
believed that the project would deliver compelling risk-adjusted
returns, this would be over a number of years. The disposal,
however, provides cash consideration in the short-term, and reduces
development risk for DUPD shareholders. We believe the disposal is
the right decision for shareholders and is also fully supported by
Dragon Capital."
For further information, please contact:
Dragon Ukrainian Properties & Development Plc (www.dragon-upd.com)
Mark Iwashko (Chairman) +380 (50) 381 8811
DCM Limited (Investment Manager)
Volodymyr Tymochko +380 44 490 7120
Panmure Gordon (UK) Limited
Richard Gray / Andrew Potts +44 (0)20 7886 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISLLFLSIELDFID
(END) Dow Jones Newswires
October 27, 2017 10:18 ET (14:18 GMT)
Dragon-ukrainian Propert... (LSE:DUPD)
Historical Stock Chart
From Apr 2024 to May 2024
Dragon-ukrainian Propert... (LSE:DUPD)
Historical Stock Chart
From May 2023 to May 2024