Euro Capital Projects Plc ("Euro Capital" or "the Company")
The Board of the Company announced on 23 December 2005 that the it had agreed,
subject to shareholder approval, to enter into an agreement to acquire certain
residential property assets in Cyprus (the "Acquisitions"), and that its shares
be suspended from trading on AIM until such time as an Admission Document is
posted to shareholders.
An Admission Document was posted to shareholders on 23 January 2006 describing
the proposed Acquisitions, details of which are set out below.
An Extraordinary General Meeting of the Company is to be held on 16 February
2006 seeking shareholder approval for the Acquisitions.
A copy of the Admission Document sent to shareholders may be found at
The Company has today requested that trading in its shares is now resumed on
Future Strategy and Plans for the Company
The Directors intend to make further investments in either property related
companies or direct investments in property assets. The Directors intend to
focus the Company's strategy on Europe and the Middle East. Suitable future
investments that will be considered by the Directors will be based on
anticipated profitability arising from:
(i) Off plan early stage property transactions;
(ii) Purchase of properties where a disposal at a profit in the
short term is anticipated;
(iii) Purchase of properties where a substantial rental yield or
disposal profit is anticipated in the medium term;
(iv) Investment into property related companies or similar business
(v) speculative property development projects.
The above investments would be in respect of residential, industrial or
DETAILS OF THE PROPOSED ACQUISITIONS ARE SET OUT BELOW:-
The Company has agreed to acquire six residential properties located in a new
residential development "Sirena Olympia" in Kato Paphos, Cyprus. The
development was completed in late October 2005.
At the commencement of the development project in April 2004, the developer,
Costas Gavrielides & Sons Limited, contracted to sell 10 properties "off-plan"
to Camelot Reality Limited ("Camelot"). Camelot has agreed to sell 6 of the 10
properties (at the original purchase price) to the Company.
The contract is subject to the approval of the Company's Shareholders, which is
to be sought at the Extraordinary General Meeting.
Subject to shareholder approval, the Company will acquire 6 of the 10
properties from Camelot for a total price, including stamp duty and local legal
fees, of CY£489,427 (approximately £590,000).
The consideration of CY£489,427 for the Acquisitions is payable in cash upon
receipt of Shareholders approval for the Acquisitions.
The system for registering a new property purchaser with the Cyprus Land
Registry takes a total of three years. Accordingly, rather than the Company
exchanging contracts with Camelot directly, Camelot has agreed to cancel the
contracts originally entered into between itself and the developer and the
Company has entered into new contracts with the developer instead.
Description of the properties
Each of the 6 properties has 2 bedrooms. The covered area of the apartments is
between 85 sq. meters to 100 sq. meters. The properties are situated in an
elevated position with cliffs to the rear.
The properties are situated an approximate 15 minutes walk from Paphos and an
approximate 10 minutes walk from the centre of Kato, Paphos.
The closest airport to the properties is Paphos Airport which is an approximate
15 minute drive away. There is a harbour approximately 5 minutes drive from the
Euro Capital Projects plc
Mike Nash, Chairman 07717 493495
City Financial Associates Limited
Liam Murray 020 7090 7800