ANNOUNCEMENT TO THE ATHENS EXCHANGE - MAY 3Rd, 2006
On May 2, 2006 Eurobank Properties Real Estate Investment Company (Eurobank Properties) signed a pre-contract for the acquisition of a 11,545.59 sqm property located on the corner of Kyprou and Archimidous streets in Moschato of Attica (southern Athens area). The property is a former industrial building (previously Tsirozides spinning mill) and will be leased, based on the terms of a memorandum of understanding (MoA), to companies of the Eurobank EFG Group. Pursuant to the MoA, Eurobank Properties will undertake improvements to the property in the amount of approximately euro 3.5 million with the purpose of upgrading the building and making it suitable for contemporary office use. The acquisition price was set at approximately euro 10.1 million with an estimated annual rental yield, following the completion of works and based on the total invested capital, of 8%. It is noted that based on the relevant valuation performed by the Body of Chartered Valuers (SOE) the value of the property in its current condition was estimated at euro 10.2 million. The leasing agreement is expected to be signed by the end of June 2006. The above mentioned MoA is binding for the two parties, provided that all agreed conditions have been met. The present investment (total estimated required capital of approximately euro 13.6 million) will be financed with part of the funds that were raised in the IPO of Eurobank Properties.