Cinema City International together with U. Dori jointly agree to purchase 15.3% of shares in Ronson Europe from GE Capital Real Estate
Cinema City International NV (“Cinema City”) announces that its subsidiary has signed an agreement for the indirect purchase of 7.65% of shares in Ronson Europe NV (“Ronson”), a residential developer in Poland operating in midscale segment of residential market in key Polish cities. U. Dori Group (“Dori”) also signed the agreement in respect of the indirect purchase of a similar amount of shares in Ronson.
Prior the transaction Cinema City was an economic beneficiary of a 32.11%-stake in Ronson Europe NV through a jointly controlled general partnership formed under Dutch law between its subsidiary, ITR 2012 B.V. and ITR Dori B.V.
Post transaction, the general partners shall jointly exercise the voting rights attached to 79.56% of the shares in Ronson Europe NV. Ronson Europe NV is a WSE listed company. Completion of the transaction is expected to occur in November 2013, subject to the satisfaction of some conditions precedent,
“We decided to take this opportunity to increase our holding in Ronson and to continue our general partnership with Dori in this venture. We very much appreciate the contribution of GE Capital Real Estate to the development of Ronson. GE Capital Real Estate has been a valuable partner in running the real estate company and we respect their decision to trim operations in Poland in this field.” said Moshe (Mooky) Greidinger CEO of Cinema City International “We believe that Ronson will continue delivering growth with a number of new projects being developed on an existing land base and on the new plots that become available. For Cinema City this transaction will generate a considerable one-time financial benefit, which will be followed by a higher contribution of Ronson to Cinema City results on an on-going basis.”
“We have very much enjoyed being a part of the growth and success of Ronson over the last few years. As part of GE Capital Real Estate’s strategy to grow our Debt Business, we are decreasing some of our equity investments. We know that we leave Ronson in very good hands and we are confident that Ronson will continue to be a great success in the future and that the Polish real estate market will continue to flourish.” said Frank Roseen, GE managing director, Germany and Central and Eastern Europe.
ITR 2012 and Dori shall jointly acquire 41 800 000 shares in Ronson Europe NV, representing 15.3% of the company’s capital. These shares carry 41 800 000 votes at the General Meeting of Ronson. Post transaction, Cinema City and Dori indirectly control 79.56% of the share capital in Ronson. Closing of the transaction is expected in November 2013 following fulfillment of some conditions precedent
Ronson is a well-established residential developer in Poland having commenced operations in 2000. Ronson is focused on mid-class residential projects in Warsaw, Poznań, Wrocław and Szczecin and it is renowned for high quality and sound financial performance generating strong margins when compared with its domestic competition. An adequate mix and size of projects enables accelerated growth of Ronson. The Company is currently offering to clients 6 ongoing projects and there are a further 8 completed projects with approximately 560 apartments. The plans for entire 2013 provide for 500 handovers and launching three new projects: Tamka and Magellan I in Warsaw and Copernicus I in Poznań with a total of 422 units. Ronson has an extensive land base in well selected locations to develop subsequent projects and it currently considers acquisition of new plots supporting the growth of the company in a long term. Ronson is a public company listed on the Warsaw Stock Exchange since 2007.