Nanette Real Estate Group NV

"Nanette" or "the Group"

Debenture Fund Raising

Nanette is very pleased to announce that following the announcement made on June 4th 2008, the Group has completed a Debenture fund raising in the Israeli market for the total amount of NIS 130 million (Euro 24.5 million).

The debentures bear interest of 8% linked to the Israeli Consumer Price Index., The debentures are to be repaid in a 3 year period staring 2011. The Company is planning to list the debentures on the Tel Aviv Stock Exchange.

The funds will be used to fund the continuing expansion of Nanette's portfolio of high quality residential real estate throughout Central and Eastern Europe. Nanette is currently active in Poland, Hungary, Romania, Croatia and Ukraine and controls projects across the full development spectrum.

Shaul Lotan, Chairman of Nanette and Oscar Kazanelson, Chief Executive, comment: 

"Nanette has again proven that in spite of the global financial turmoil, our capable management and quality projects provide an excellent investment case. We are delighted at this sign of confidence from international institutional investors and look forward to continuing our impressive growth throughout the Central and Eastern European region.

17 June 2008

• News Channel