Dow Jones International News

May 17, 2007

LONDON (Dow Jones)--Dragon-Ukrainian Properties & Development, an active investor in the development of new commercial properties as well as in the redevelopment of existing properties in Ukraine which offer the prospect of attractive returns to its shareholders, said Thursday that it plans to float on AIM.

The company plans to place new Ordinary shares of 1 pence each at $2 and expects to have a market capitalisation of $200 million on Admission which is expected on June 1.

The initial focus will be on the development of new and re-development of existing commercial properties in the retail, office and warehousing sectors. However, the directors will also consider alternative types of investment in real estate, including land acquisitions with development potential for residential projects, where they believe such investments will generate appropriate returns for shareholders.

The company's initial investment and development activities will focus on Kyiv and Kyiv oblast as well as other major regional centres of Ukraine where the population exceeds 700,000 people.

Whilst the primary focus will be on the development and re-development of commercial properties and, to a lesser extent, on secondary market acquisitions, the company will actively seek opportunities to enter into sale-and-leaseback arrangements, mainly in the retail sector where the directors believe such opportunities are likely to be present, given the continued expansion of the retail sector in the Ukraine.

The company expects to implement its strategy in partnership with one or more local property development experts. It may acquire properties from such partners and may make investments in, or from joint ventures with them.

The directors expect the company to play an active role in selecting and supervising the projects in which the company will become involved.

The company expects to invest the net proceeds of the placing within 24 to 30 months after Admission. Funds not invested will be held on deposit in cash or in near cash instruments.

Dragon Capital Partners will act as investment manager to the company and will be responsible for identifying new investment opportunities for the company.

The company's nominated adviser and broker is Zimmerman Adams International.