Nanette Real Estate Group NV

'Nanette' or 'the Company'

Nanette Secures Finance for Real-Estate Projects in Poland

Nanette is very pleased to announce that two of its subsidiaries in Poland have been concluded financing and refinancing facilities with Nordea bank, for the total amount of Euro 53 M (PLN 240 M).

A loan facility has been concluded with ROBYG City Apartment (RCA) for the amount of Euro 40 M (PLN 180 M). The agreement includes a rearranging of the existing loan facility and an additional loan facility of Euro 11 M (PLN 50 M).  Nanette holds 50% in ROBYG SA, which holds 75% of ROBYG City Apartment.  The Rothschild group holds 25% of RCA

An additional loan facility was originated with ROBYG Jabłoniowa (RJ) for the amount of Euro 13 (PLN 60M) and included a rearranging of the loan facility. ROBYG SA, holds 100% of ROBYG Jabłoniowa.

The loan facilities designated to expedite the projects' development and will finance the construction work of the projects.

These facilities are providing Nanette an additional leverage and demonstrating the Company's strong positions in the local markets were it is active.  

In addition the company would like to report that in the last three months, it sold in Poland 100 flats, which represents a substantial growth, compared to the total number of flats it sold (86) during the whole year of 2008.

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

'Nanette is proving again to its investors and the financial market that despite the financial turmoil in the world, our capable management and quality projects are working as planned. We are able to obtain finance for our projects to fund the construction and part of the lands' acquisitions in accordance with our business plan'.

18 May 2009