Stock Exchange Announcement
10 July 2015
RomReal : Sale of plot and related party transaction disclosure.
RomReal's Board has agreed a sale of 1,956 square meters of the Balada Market property (total area 7,188 square meters) in Constanta. The price agreed is EUR 275 per square meter and in line with the most recent Knight Frank IFRS valuation.
RomReal is expected to collect the net price of about EUR 537,900 meaning that any VAT and/or commissions will be covered by buyer. The bulk of the proceeds from this potential sale are projected to reduce the Alpha Bank loan.
The present cash flow stream from the Balada market is not expected to be affected significantly from this potential sale since the land in question is part of the market's parking space and does not affect the operation of the market.
The aforementioned sale is considered by the Company as a related party transaction since RomReal and Westhouse Group CEO, Mr. Kay Thorkildsen, is taking part with a 40% stake in the consortium that is making the purchase offer. The Company is taking all the appropriate steps to ensure that this transaction is done at an arm's length principle and in a transparent manner.
The disposal is in line with the Company's strategy and the Board is confident further transactions to materialize.
For further information please contact:
Harris Palaondas
Investor Relations
+40 731123037