ΜΗΧΑΝΙΚΗ Α.Ε.
PRESS RELEASE
The Chairman of the Board of Directors, Mr Prodromos Emfietzoglou, announced the following at the ordinary General Assembly of MICHANIKI with regard to the Group?s progress and prospects:
1. Projects Abroad
It was decided to continue the investments in Russia, Ukraine and Bulgaria.
Russia
- The construction of the HERA complex continues with an estimated conclusion at the end of 2011. Sales shall start in September and be concluded within 2011. The project?s profitability is estimated at € 15 million.
- The construction of the ALEXANDER the GREAT complex continues. The sale of one of the three towers is under consideration. In case of a final agreement, the first payment shall be approximately € 50 million, solving thus the problem of the project?s financing.
- The residential complex APHRODITE is expected to get a construction permit in September. Starting construction date: Spring 2011.
- The transfer of 20% of the Share Capital of MICHANIKI RUSSIA is under consideration.
The final decision shall depend on the final offered price.
Ukraine
- The construction of the ARTEMIS complex (apartments, offices, commercial spaces) in Kiev continues. The sales are estimated to be concluded up to the 1st semester of 2012. Estimated profit: € 15 million.
Bulgaria
- The building permit for the RODOPOLIS project in German, Sophia, was acquired. The decision about the starting of construction shall be made after taking into account the Group?s general cash flow.
Egypt
- It was decided either to sell the two plots of land or to postpone their exploitation for later.
2. Activities in Greece
- The construction of Public Works is drastically decreasing. The problem of payment delay still exists. Our claims in total for public works already implemented and in the process of implementation amount to € 135 million.
- Special emphasis is given to the investments on RES (Hydroelectric projects). It is estimated that the bureaucratic problems shall be solved and the Ag. Nikolaos and Karpenisiotis projects as well as the Poseidon I and Poseidon II pumping projects shall start.
- Discussions are taking place with the Banks for the re-financing of the loan amounting to € 120 million plus € 15 as a working capital. When the deal is finalized, it will be immediately announced.
- With regard to the decided increase of the Share Capital, it is estimated that the conditions shall allow its implementation within the current year.
1. Projects Abroad
It was decided to continue the investments in Russia, Ukraine and Bulgaria.
Russia
- The construction of the HERA complex continues with an estimated conclusion at the end of 2011. Sales shall start in September and be concluded within 2011. The project?s profitability is estimated at € 15 million.
- The construction of the ALEXANDER the GREAT complex continues. The sale of one of the three towers is under consideration. In case of a final agreement, the first payment shall be approximately € 50 million, solving thus the problem of the project?s financing.
- The residential complex APHRODITE is expected to get a construction permit in September. Starting construction date: Spring 2011.
- The transfer of 20% of the Share Capital of MICHANIKI RUSSIA is under consideration.
The final decision shall depend on the final offered price.
Ukraine
- The construction of the ARTEMIS complex (apartments, offices, commercial spaces) in Kiev continues. The sales are estimated to be concluded up to the 1st semester of 2012. Estimated profit: € 15 million.
Bulgaria
- The building permit for the RODOPOLIS project in German, Sophia, was acquired. The decision about the starting of construction shall be made after taking into account the Group?s general cash flow.
Egypt
- It was decided either to sell the two plots of land or to postpone their exploitation for later.
2. Activities in Greece
- The construction of Public Works is drastically decreasing. The problem of payment delay still exists. Our claims in total for public works already implemented and in the process of implementation amount to € 135 million.
- Special emphasis is given to the investments on RES (Hydroelectric projects). It is estimated that the bureaucratic problems shall be solved and the Ag. Nikolaos and Karpenisiotis projects as well as the Poseidon I and Poseidon II pumping projects shall start.
- Discussions are taking place with the Banks for the re-financing of the loan amounting to € 120 million plus € 15 as a working capital. When the deal is finalized, it will be immediately announced.
- With regard to the decided increase of the Share Capital, it is estimated that the conditions shall allow its implementation within the current year.