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Nanette Real Estate Group NV

'Nanette' or 'the Company'

New Investment Partner in Budapest, Hungary

Nanette Real Estate Group, the Central & Eastern European residential developer, is pleased to announce that on 12 August 2009, the Company and its 100% subsidiary (the 'Daughter Company') signed an agreement with a nonrelated third party, (the 'Investor'), to sell 50% of the Daughter Company holdings in Nanette City Home Kft (the 'Project Company'). Accordingly, it has agreed that the Daughter Company will continue to hold 52% of the voting rights in the Project Company.

Following the transaction, the Daughter Company's holdings were reduced in the profit rights of the Project Company from 100% to 50%. The transaction will result in an immaterial profit to the Daughter Company and to Nanette.

The Project Company, incorporated in Hungary, is holding a plot of land sized 7.2 dunam in Budapest. According to the existing zoning, the Project Company may build 400 flats with projected sale proceeds of approximately Euros 25M with a projected cost of Euros 20.2M. The Project Company is in a process of obtaining a building permit. The Project Company is actively seeking banking finance and is in negotiation with several banks. Once the building permit is granted, and subject to receipt of the banking finance, the Project Company is planning to start the project. 

The Investor purchased the shares for a consideration of Hungarian Forint 2,250,000.

In addition the Investor provided the Project Company a Shareholder loan of Euros 1.8M, which represents approximately 50% of the owner's loan that the Daughter Company provided to the project. The agreement includes provisions that govern the relationship between the two parties as joint shareholders in the Project Company. 

 

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

'Despite the tough market conditions and the world financial crises, Nanette continues to team up with new partners that are confident in its ability to develop new projects in the region'.

     13th August, 2009

Enquiries:                                                                                                                        

Nanette Real Estate
	Shaul Lotan	+ 31 20 778 4141
	Eyal Keltsh	+ 48 606 141 201
Global Equity IR
	Amira Bardichev	07956 206270
KBC Peel Hunt
	Anthony Bell	020 7418 8900

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