Ablon Group Limited Loan transfer update (7301C)

TIDMABL

RNS Number : 7301C

Ablon Group Limited

18 April 2013

18 April 2013

Ablon Group Limited

("ABLON" or "the Company")

Update on transfer of certain loans and associated arrangements

ABLON, a subsidiary of CPI Group a.s., which is in the closing stages of its successful cash offer for the Company, today gives an update on the loan arrangements originally announced on 22 March 2013.

The EUR5.5 million increase on the loan granted to Global Immo Kft by Volksbank AG ("Volksbank") ("Gateway Loan Increase") was drawn as to EUR1.8 million on 9 April 2013, in order to fully repay two long term Ablon Group loans, being loans in respect of the Fogarasi and Hightech Park projects, and as to EUR3.7 million on 16 April 2013, as a source of additional liquidity for the Company. The interest on the Gateway Loan Increase is at 2% above the 3 month Euribor.

On 21 March 2013 the Company entered into an assignment agreement with Volksbank whereby it purchased the EUR1.25 million loan on the Buyway Soroksár project for a consideration of EUR1. The Company has also assumed the corporate guarantee originally provided by CPI Beta a.s. ("CPIB") to Volksbank in respect of the repayment of the principal and interest of the Fogarasi, Buyway Dunakeszi and Buyway Soroksár loans. Following the repayment of the Fogarasi loan by the Gateway Loan Increase, as detailed above, the guarantee now only extends to the Buyway loans.

In addition, the expired loans that were purchased by CPIB from Volksbank on the following projects:

   --      Hightech Park, Hold, Katona, Nap projects in Hungary; 
   --      Kolben, May House and Ritka project in the Czech Republic; and 
   --      Mogosaia project in Romania. 

have been prolonged until 21 September 2014 with the interest rate being maintained at the same level as that of the expired loans. CPIB has waived a EUR0.8 million penalty interest which has accrued on some of the loans.

Under its cooperation agreement with CPI Group a.s., details of which were announced on 10 April 2013, excess financial liquidity out of the refinancing of EUR2.8 million, was transferred to CPI Group a.s. on 16 April 2013.

Enquiries:

Alex Borrelli / Adrienn Lovro

Ablon Group Limited

[phone]/[phone]

Roland Cornish/Emily Staples

Beaumont Cornish Limited

[phone]

About ABLON Group Limited

Founded in 1993 in Budapest (Hungary), ABLON and its subsidiaries (together the "ABLON Group") has properties at 33 locations, of which there are 15 completed projects and 23 development projects in Budapest, Prague, Bucharest and Warsaw. Its portfolio comprises a diversified mix of office, residential, retail, logistics and hotel developments valued at approximately EUR370 million by external independent appraiser (Colliers International) as at 31 December 2012. The ABLON Group had, as at 31 December 2012, approximately 208,800 square metres of existing and income generating office, residential, hotel, retail and logistics assets (at 15 locations) in Budapest and Prague, with a significant development land bank comprising a further circa. 1,164,500 square metres (at 23 locations) in Budapest, Prague, Bucharest and Warsaw. ABLON's shares are traded on the Main Market of the London Stock Exchange under the ticker 'ABL'.

This information is provided by RNS

The company news service from the London Stock Exchange

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