Tallinn, 2014-01-31 08:31 CET (GLOBE NEWSWIRE) --
AS Pro Kapital Grupp informs that subsidiary company of the group AS Tondi Kvartal has on 30.01.2014 concluded the contract for establishment of OÜ Marsi Elu. The business area of the new subsidiary of AS Tondi Kvartal is real-estate development and the planned business activity is the development of the first phase of the second stage of Tondi residential area located in Tallinn.
The transaction is not considered to be a transaction with connected persons within the meaning of the stock-exchange requirements and members of the Issuer’s supervisory board and management board are otherwise personally not interested in the transaction. The establishment of the subsidiary does not have an effect of the economic activity of the issuer.
The share capital of OÜ Marsi Elu is EUR 10 000, which upon the establishment of the company belongs 100% to AS Tondi Kvartal. The members of the management board of the new company are the Chairman of the Management Board of AS Pro Kapital Grupp Mr. Paolo Vittorio Michelozzi and Head of Legal of the group Mr. Ervin Nurmela.
The purpose of establishment of the subsidiary is to start with the residential development of Marsi street 3 // 3a // 3b // Sammu street 6 // 6a // 6b // Sõjakooli street 12 // 12a // 12b // 12c land plot located at the Tondi residential area in Tallinn and to create a legal platform for possible participation of co-investor in the project.
The City of Tallinn has on 30.10.2012 issued the building permits, which allow the construction of 10 residential buildings with total 309 apartments on the Marsi street 3 // 3a // 3b // Sammu street 6 // 6a // 6b // Sõjakooli street 12 // 12a // 12b // 12c land plot. In the first phase of the second stage of development of Tondi residential area it is planned to start with construction of the first three buildings with total 93 apartments.
In the near future it is planned to sell part of the business of AS Tondi Kvartal needed for executing the project to the new subsidiary. The part of the business to be transferred includes part of the land plot needed for the development of the project, the pre-sale agreements of apartments already signed and other set of contracts needed for the development of the project.
In order to start with the construction works the negotiations are held with the main contractor, the bank and the possible co-investor. It is planned to sell a minority stake in the new subsidiary to co-investor.
AS Pro Kapital Grupp will inform its investors through the stock-exchange additionally when additional binding agreements are signed in regards to the project.
Information on Tondi residential development can be found at www.tondilinna.ee
AS Tondi Kvartal is a company established 07.10.1997, which belongs 100% to AS Pro Kapital Eesti. AS Pro Kapital Eesti is 100% subsidiary of AS Pro Kapital Grupp. AS Tondi Kvartal is the owner of the land plots needed for the development of the Tondi residential area.
Head of Investor Relations