Concluding an agreement for the purchase of property by one of the Issuer’s subsidiaries

Current report No. 9/2016 of March 30, 2016
Wednesday, March 30, 2016

Legal basis: Article 56.1.2 of the Act on Public Offering – current and periodical information

In relation to Current report No. 28/2015 of August 14, 2015 and Current report No. 37/2015 of November 17, 2015, the Management Board of Polski Holding Nieruchomości S.A. (the “Issuer”) hereby informs that on March 30, 2015, one of the Issuer’s subsidiaries – PHN SPV 33 Sp. z o.o. based in Warsaw (“PHN SPV 33”) – concluded a final agreement for the purchase from Torus spółka z ograniczoną odpowiedzialnością spółka komandytowa based in Gdańsk (“TORUS”) of the right of perpetual usufruct of property located in Gdańsk at al. Grunwaldzka 409 and the ownership of A-class office building with an area of approx. 25,000 sq.m. located on the property, constituting the second phase of the complex known under the name of “Alchemia” (hereinafter jointly referred to as the “Property”).

According to the final agreement, the final price of the Property has been specified based on the price formula which takes into account the basic rental rate and the agreed capitalization rate as well as additional adjustments, including adjustments due to rent waivers, and amounts to EUR 60.6 million (which as at March 30, 2016, is the equivalent of PLN 257.2 million based on the average exchange rate of the National Bank of Poland). PHN SPV 33 has obtained external financing for the transaction, which was communicated by the Issuer in Current report No. 8/2016 of March 25, 2016.

The Property was commissioned in October 2015 and consists of two parts: a 6-storey and an 8-storey one, which are joined by a common 4-storey base but have separate reception areas. Main tenants include State Street investment bank, which has rented the entire tower, Wipro IT Services and Alexander Mann Solutions.

The terms and conditions of the final agreement do not significantly differ from standard terms and conditions used in such agreements. The agreement does not include provisions about contractual penalties.

There are no relations between TORUS on the one side and the Issuer and PHN SPV 33 on the other, or between the persons who manage or supervise TORUS and the persons who manage or supervise the Issuer and PHN SPV 33.

The sale agreement and the related assets have been deemed as significant because their value exceeds 10% of the Issuer’s equity.

Concluding the final agreement for the sale of the Property is aligned with the Issuer’s strategy, which assumes acquisitions of modern office spaces.

Legal basis: Article 5.1.1 and 5.1.3 in relation with Article 7 and 9 of the Regulation of Minister of Finance of February 19, 2009 on current and periodical information published by issuers of securities and the conditions of recognizing information required by the regulations of non-member states as equivalent (Journal of Laws 2009 No. 33, item 259, as amended).

Signatures of the Company’s representatives:
Maciej Jankiewicz - President of the Management Board
Zbigniew Kulewicz – Vice-President of the Management Board