Engel East Europe N.V.
16 August 2006
ENGEL EAST EUROPE N.V.
New project of 550 residential units
in Bucharest, Romania
Engel East Europe N.V. ('Engel East Europe' or 'the Company'), the AIM-listed
Central and Eastern European ('CEE') residential property developer (EEE:L), is
pleased to announce that it has signed an agreement for the purchase of 3
adjacent plots in Bucharest, Romania, for the development of approximately 550
residential units. The Company estimates that the projected sales of the project
will total approximately €60 million.
The Company intends to develop a residential project of approximately 55,000sqm
on the acquired plots with a total land area of 23,000sqm. The project is in a
superior lakeside location, within the prestigious Pipera neighbourhood.
The total purchase price of the land is approximately €4.6 million. Of this,
approximately €1.5 million was paid upon the signing of a final agreement for
one plot, with a planning permit of approximately 7,500sqm. The remaining €3.1
million will be paid upon receipt of the planning permit for the two additional
plots. If the planning permit is not issued by the seller within 60 days, the
Company will be awarded a 50% discount, or given the option to withdraw from the
Engel East Europe is in continual negotiation for the purchase of land for the
development of additional projects throughout the CEE Region.
Jacob Engel, founder and Executive Chairman, said:
'We are delighted to once again announce this new development project. This is
Engel's third project in Romania, following two recent MOU announcements.
Romania is a market which we have always forecast as one of the most promising
areas for residential projects and therefore part of our main focus.
This newest acquisition complements our vision of further expanding our
activities in both existing and new markets, taking full advantage of the
considerable growth opportunities for residential property development in the
Engel East Europe N.V.
Nir Netzer, Finance Director
+972 9970 7024
Citigate Dewe Rogerson
Sally Marshak / George Cazenove / Hannah Seward
+44 20 7638 9571
Notes to editors
Engel East Europe is an international residential property developer
incorporated in The Netherlands. The Company operates in Central and Eastern
Europe (the 'CEE Region') and has various developments in Hungary, the Czech
Republic, Poland, Bulgaria, Romania and Serbia & Montenegro as well as
operations in Germany and Canada. Engel is currently involved in the
development of approximately 12,000 residential units and is in negotiations to
purchase land for the development of additional projects throughout the CEE
This information is provided by RNS
The company news service from the London Stock Exchange