Nanette Real Estate Group NV

"Nanette" or "the Group"

New partnership with the Rothschild Group 

Nanette is very pleased to announce that following the announcement made on June 23rd 2008, Nanette has signed a preliminary agreement to sell 45% of its current holding in Taltoring Ingatlanforgalmazo Kft ("Taltoring") (being 45% of the share of Taltoring) to "EdR Real Estate (Eastern Europe) S.C.A." a Luxemburg registered company 100% owned by the Rothschild Group. 

Taltoring is the SPV that in April 2008 purchased a 151,000 Sqm plot in Budapest. The land has military designation; however Taltoring is in a process for zoning change to commercial, retail and residential. Taltoring intends to sell part of the land once the zoning change had been approved.

"EdR Real Estate (Eastern Europe) S.C.A." will pay a total of Euro 337 5 to acquire the stake. In addition, Rothschild will provide a loan to NDC for a total consideration of Euro 7.16 million.

Rothschild will transfer the total amount of Euro 7.5 million to an escrow account, the funds will be forward to Nanette upon signing of the final agreement, no additional conditions need to be fulfilled.  

Nanette will recognise a profit  of Euro 337 500. In addition Nanette will be entitled for 30% of the Rothschild share in the profits once several conditions had been fulfilled -  including an IRR above 25%. The profit bonus promote that Nanette is entitled from AI Property Holdings LP (Hungary) (as described on the release from June 23rd, 2008) will be paid directly to Nanette.

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

"We are delighted to have completed this deal, which provides an impressive level of both positive cash flow and profit.

We are also particularly pleased to have continued our exceptional relationship with the Rothschild Group. We have worked profitably together to make the best of what are complex operating conditions in Central and Eastern Europe. 

30 June 2008

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