Dragon-Ukrainian Properties & Development, to be listed on AIM, is set to become the largest Ukrainian IPO to date

KYIV, May 18, 2007 – Kyiv-based investment bank Dragon Capital has successfully completed the raising of $208m for Dragon-Ukrainian Properties & Development PLC (DUPD) which, when listed as expected on the London AIM June 1, will make the real estate fund Ukraine’s largest IPO to date.
The fund’s investment focus will be on the development of new properties and the re-development of existing ones in the retail, office and warehousing markets. Dragon Capital Managing Director Tomas Fiala says that the fund will also pursue investments in alternative real estate projects, such as acquiring land suitable for developing residential projects.
“The Ukrainian real estate market is booming,” Fiala says, adding that the “(DUPD) fund projects will target attractive yields for shareholders.”
The announcement comes as Kyiv’s real estate market continues to suffer from a severe shortage of commercial properties of all types, notably Class A, with near-zero vacancy rates and rents currently higher than in many central and western European capitals.
Dragon Capital Partners Ltd, the private equity division of Dragon Capital, will act as investment manager to DUPD and will be responsible for identifying, structuring and executing investment opportunities for the fund. Dragon Capital has been an active investor in the real estate sector since its founding and has developed an extensive portfolio of commercial properties throughout Ukraine. The new fund will therefore initially center its investment and development activities on Kyiv and Kyiv region, but will also target other main regional centers with populations of more than 700,000 people.

ABOUT DRAGON CAPITAL
Dragon Capital is Ukraine's leading securities brokerage, investment banking, private equity and asset management firm offering a comprehensive range of services to institutional, corporate and private clients. The bank is an independent partnership of financial industry professionals with more than ten years experience in CEE markets. Dragon Capital has been the largest broker on the domestic stock market since start-up in 2000 and, in particular, accounted for 32% of total stock turnover on the PFTS, Ukraine’s leading exchange, in 2006. Dragon’s investment banking division completed 12 IPOs and private placements for Ukrainian companies in 2006, raising close to $450m. In addition, the bank helped local corporates attract $300m of debt last year. Financial magazine Euromoney recognized Dragon Capital as the Best Equity House in Ukraine in 2002, 2004, 2005 and 2006, or each of the four times it selected nominees from Ukraine for this accolade.