Nanette Real Estate Group NV

'Nanette' or 'the Company'

New Investment Partner in Budapest, Hungary

Nanette is very pleased to announce that it signed an agreement to sale 50% of the Company's rights in Albert Ingatlan Kft (the 'Project Company). It has been agreed that the Company will continue to hold 52% of the voting rights of the Project Company.  

As a result of the transaction the Company has reduced its profit holdings from 100% to 50%. The company will recognize an immaterial profit from the sale.

The consideration of the sale of shares was 250,000 Hungarian Forint. Furthermore, the Investor has provided to the Project Company an owner's loan of 893,000 Euro (which is approximately 50% of the owners' loan provided by the Company to the Project Company). The agreement includes instructions that govern the relationship between the two parties as shareholders in the Project Company.

The Project Company, incorporated in Hungary, purchased, on the 15th of July 2008, a 6.2 sq.m. plot of land in Budapest, planned, according to the current zoning, to build 183 units with projected proceeds of approximately 10 million Euro, with a projected cost of 8.35 million Euro. The Company is in the process of obtaining building permissions and is also currently negotiating banking finance. Once the building permissions are granted, in conjunction with the banking finance, the Company plans to start the project.

Shaul Lotan, Chairman of Nanette and Oscar Kazanelson, Chief Executive, commented: 

'Nanette proves again to the market and to its investors, that despite the tough market conditions and the world financial crises, it continues to find new partners that are confident in its ability to develop new projects in the region'.

23rd April, 2009

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