Orchid Developments Group Ltd Carrefour supermarket to open as anchor tenant (6559K)

TIDMOCH

RNS Number : 6559K

Orchid Developments Group Ltd

23 August 2012

23 Aug 2012

Orchid Developments Group Ltd.

("Orchid" or the "Group")

Carrefour supermarket to open as anchor retail tenant at Orchid Gardens Varna

Orchid (AIM: OCH), the Bulgarian focused property developer and investor, announces that a new Carrefour supermarket will open as an anchor retail tenant at Orchid Gardens, Varna ("Orchid Gardens"), the Group's mixed used retail development that is nearing completion. The lease agreement ("Lease") has been signed with Carrefour's franchise partner in Bulgaria, CMB Bulgaria EAD ("Carrefour").

Under the Lease, Carrefour has agreed to occupy 850 sqm on the ground floor of the retail section of Orchid Gardens and to open a smaller footprint 'neighborhood' supermarket. The supermarket is scheduled to open in the middle of November 2012, following the completion of the development and the issue of a usage permit from Bulgarian authorities.

This letting represents the first uptake by a tenant in this project and represents 18% of the total net lease area of Orchid Gardens.

Orchid Gardens is a 16 floor building with a gross area of 42,570 sqm of which, 12,100 sqm is for apartments (107 units, 12 of which have already been sold), 9,500 sqm represents office space, 7,700 sqm of retail area and 13,270 sqm of underground parking.

Orchid Gardens is held in a ring fenced subsidiary of the Group. Therefore this first letting will, on commencement, improve that subsidiary's cash flow but will not have an effect on the Group available cash in the short term.

Guy Meyohas, Chief Executive Officer of Orchid, said:

"We are delighted that once again Carrefour has chosen to open a new supermarket in an Orchid project, following the success of its existing store at our Grand Mall location. This demonstrates Orchid's ability to attract quality retail brands to its developments, which we hope to build on over the course of 2012-2013."

Ends

 
Contacts: 
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Orchid Developments 
 Guy Meyohas                          [phone] 
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Shore Capital and Corporate Limited 
 Bidhi Bhoma / Toby Gibbs             [phone] 
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MHP Communications 
 Reg Hoare / Vicky Watkins            [phone] 
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Notes to Editors:

Orchid Developments Group Ltd (OCH.L), which listed on the AIM market in July 2005, was established with the aim of generating value for shareholders by investing in real estate and leisure business opportunities initially in Bulgaria.

The company is active in all principal sub-sectors of the Bulgarian real estate and leisure markets and currently holds three residential and six commercial property developments in Sofia and Varna. Its principal investment is the Grand Mall in Varna, a leading shopping mall in Bulgaria.

This information is provided by RNS

The company news service from the London Stock Exchange

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