Conclusion of construction contract and start of the construction in Vilnius

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| Source: Pro Kapital Grupp
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Tallinn, 2014-02-05 12:33 CET (GLOBE NEWSWIRE) -- AS Pro Kapital Grupp informs that subsidiary company of the group PK Invest UAB has on 05.12.2013 concluded the construction contract with UAB Merko Statyba for construction and projecting works of residential apartment building in Vilnius. The lump sum of the contract is 4 126 867 Litas (1 195 223 EUR), excluding VAT.

With the construction contract it was agreed that UAB Merko Statyba will start with the construction works only after the instruction of PK Invest UAB. PK Invest UAB had the right to cancel the contract without cause.

Due to the remarkable presale level of the new building PK Invest UAB has on 05.02.2014 instructed UAB Merko Statyba to start with the construction works.

The new building will be located in Lithuania Vilnius, at Saltiniu Namai residential building complex, which is being developed by Pro Kapital. The new building will have in total 16 apartments, 3 commercial premises and net sellable area of 1 160 m2. As of 04.02.2014 14 units out of 19 units are covered by presale contracts. Prior to start with the construction 74% of the units have been sold to the buyers.

The CEO of AS Pro Kapital Grupp Paolo Vittorio Michelozzi commented: “we have seen strong demand in the upper class residential market in Vilnius and are very pleased with the pre-sale level of the new building. The pre-sale level shows that there is strong demand for the product Pro Kapital is developing in Vilnius. We have chosen a reliable partner UAB Merko Statyba to perform the construction works and are confident of the success of this new project.”

After the completion of the new building there will remain still unused development volume in the Saltiniu Namai residential complex. 

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. 

Additional information:

Saltiniu Namai is a residential development project located in Vilnius next to the Old Town. The business plan for the Saltiniu Namai residential quarter foresees a series of apartment buildings built in stages. The location is attractive for a residential area: it is located right next to the Old Town and enjoys a good access both by cars and public transport. The creation of houses and cottages with leisure, sports and commercial zones – is a remarkable contribution to the expansion of Vilnius city, where the conversion of abandoned industrial areas is prominent. The first stage of Project Saltiniu Namai has been completed: four five floor buildings with attics and 11 private cottages have been built. Pro Kapital has in the first stage of the development built 143 apartments, 11 cottages and 21 commercial premises with sellable area of 15 278 m2. Residents of Saltiniu Namai quarter are already enjoying the private courtyard, finished landscape works and fully equipped children‘s playground.

PK Invest UAB is a company established 12.10.1998, which belongs 100% to Pro Kapital Vilnius Real Estate UAB. Pro Kapital Vilnius Real Estate UAB is 100% subsidiary of AS Pro Kapital Grupp. PK Invest UAB is the developer of the land plots needed for the development of the Saltiniu Namai project in Vilnius Lithuania.

UAB Merko Statyba is Lithuanian construction company, focusing on general construction, residential development and construction. The company is part of AS Merko Ehitus, which comprises also the leading Estonian construction company AS Merko Ehitus Eesti and the Latvian market based SIA Merks as well as the group’s real estate development business unit together with companies holding real estate properties. As at the end of 2012, the group employed 915 people and the 2012 revenue amounted to EUR 249.1 million.

         Iveta Vanaga
         Head of Investor Relations
         Phone: +37129239064
         E-mail: iveta@prokapital.lv