Distribution of company announcements to the professional platforms, finance portals and syndication of important corporate news to a wide variety of news aggregators and financial news systems.
RomReal is a leading developer of residential properties in Romania with particular focus on the Constanta region of Romania. RomReal's target market is the Romanian emerging middle class, where there continues to be significant growth.
As summer approaches, Constanta enters the peak season for tourism with over 1 million tourists from within Romania and other SEE countries expected to visit.
Visitors in 2008 should expect to see a much improved infrastructure in Constanta with several new hotels and leisure facilities built over the winter months together with improved air links with the rest of Europe as Constanta airport continues to increase routes with the rest of Europe, which include flights to Bucharest, Budapest, Timisoara, Ancona, Bari, Bologna, Düsseldorf, Florence, Milan, Munich, Paris, Rome, Stuttgart, Torino, Venice, Verona, Malev.
RomReal currently has 3 projects underway in Constanta via its 100% owned subsidiary in Romania - Westhouse Group (www.westhousegroup.ro). Any investors, analysts or media interested in buying an apartment should contact the sales team directly at http://www.westhousegroup.ro/en/contact/. Oasis Residences- 409 units
Construction on Phase 1 is progressing well and is currently on budget with completion due in late spring 2009.
We have re-designed the Development in 3 Phases so that we are able to control the work in progress on the project until we have clear visibility of demand.
Our sales team, together with the developments agents, Colliers, are starting to generate a good level of interest on this site. As the development reaches 3-4 storeys it will be visible from a wide area and as such, the sales process will continue to gather momentum. Investors are invited to view the current stage of construction at http://www.westhousegroup.ro/en/developments/oasis/apartments/oasis-construction-status/june-2008/.
Central Apartments- 89 units
The foundations have been dug to allow the initial piling works to progress and operations are well underway to the perimeter of the site. Completion is on programme for Autumn 2009.
Given the developments very central location in downtown Constanta, the project is starting to attract a significant amount of interest in the local community which is showing through increased sales activity.
The Corallia development is located in the popular holiday resort of Mamaia - less than 100m from the beach. The development is located within a tourist area and as such there are restrictions on building in this location between May and September each year.
Primary contractors have been appointed and building is scheduled to commence in September with completion due in late autumn 2009.
Given its prime location this development has already sold over 50% to date, demonstrating its unique appeal on the local market.
Asset disposals
RomReal announced to the market on 17 June 2008 that it had divested its Bucharest office Villa, a non-core asset, for payment in cash. The sales price was in line with the most recent independent valuation of the property which is a component of the overall published NAV figure for RomReal.
The transaction reflects RomReal's strategy to divest non-core assets to strengthen its financial position even further.
To reiterate Kay Thorkildsen's (Westhouse Group's Executive Chairman) comments in the press release, the sale of this asset, combined with the sale of a plot of land in January 2008 demonstrates that not only is there still an active market for such assets but also that the Company's NAV valuation is still a valid and realistic estimate of the current asset values.
RomReal will continue to dispose of certain assets over the coming months in order to realise asset values to underpin the Company's NAV and also to add to our cash position and strengthen our balance sheet even further.
Investor Visit
RomReal invited investors and analysts to Romania in early June to meet key personnel and to visit Westhouse Group's operations in Constanta. A key part of the trip included a visit to the 3 current developments and also to view some other key assets which the Group is in the process of progressing through development. This included assets such as the Bus Station, Ovidiu Lakeside, Balada Market and Mamaia North. More details can be found on these future projects in RomReal's annual report which can be downloaded at http://www.romreal.com/investor-relations/stock-exchange-announcement.html.
2nd Quarter results
RomReal will publish its 2nd Quarter Report and Investor Presentation via the Oslo Axess at the start of trading on 15 August 2008 and it will be simultaneously made available at www.romreal.com.
RomReal invites investors, analysts and media to the results presentation which will be held via conference call by dialling the numbers listed below at 9.30 a.m. CET on 15 August 2008:
UK +44 (0)1296 317600 Norway +47 23162814 Denmark +45 38487548 US +1 7183541176
Participant passcode: 430 137#
The call will be recorded and will be immediately available to download from www.romreal.com.
In the meantime - should you have any questions please do not hesitate to contact me directly.
Paul Bashir CEO Tel: +40 751 084 747 Mob: +44 7810 546605 E-mail: investors@romreal.com
