30 March 2006
Wilshaw PLC ('the Company')
Loan Agreement for Major Russian Office Development
30 March 2006
The Board of Wilshaw PLC announces that they have entered into a loan agreement
with Mr Scot young to part finance the initial appraisal of a major commercial
property development in central Moscow.
The Company has lent £1.75m by way of a short-term loan facility to one of the
major shareholders secured against a 12.25% interest in the shares in the
development holding company which in turn owns a 72% stake in the property.
The property has an appraised net development value in excess of $1 billion with
total construction costs estimated at approximately $475 million.
The project's initial outline development plan envisages a total gross
development of approximately 300,000 square metres of high quality office and
retail space. The project feasibility study has been carried out by Knight
Frank Russia LLC.
At the present time full planning permission for the proposed development has
not been granted and consequently arrangements are not yet in place for the
The Board of Wilshaw is currently in negotiations with other shareholders in the
project with a view to possibly increasing its involvement in the project.
In addition the Company is actively considering a property development
opportunity in central Beijing, China. Situated in the Haidian district of the
city, the proposed development site is approximately 3,000 square metres and the
Board are considering either commercial or residential development in
conjunction with a local partner.
The Company retains its investment strategy of continuing to seek to acquire a
suitable project or vehicle where the Directors believe value can be created for
shareholders and will assess an investment in these projects accordingly. The
Directors believe that the property development and investment opportunities
presented to the Company provide better prospects for fulfilling this strategy
than the opportunities it has reviewed within the Natural Resources sectors
which the Company previously stated it would focus its efforts on. In order to
retain its listing on AIM, the Company has to make a suitable reverse
transaction by 3 November 2006.
The Board intends to make a further announcement in the near future on both of
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