TIDMOCH

RNS Number : 0753B

Orchid Developments Group Ltd

11 April 2012

AIM: OCH 11 April 2012

Orchid Developments Group Limited ('Orchid' or the 'Group')

Extended Credit Facility Secured for Orchid Gardens Varna

Orchid, the Bulgarian focused property developer and investor, is pleased to announce that it has secured an extension to its credit agreement ("Revised Facility") with UniCredit Bulbank JSC (a division of UniCredit Group) relating to Orchid Gardens Varna ("Orchid Gardens"). The Revised Facility extends the facility term, including the repayment dates, with the facility amount and interest rate remaining unchanged.

Orchid Gardens is a high-end mixed-use development situated on a prime location in Varna city centre. The 16 floor development consists of 107 apartments, 88 office units and 48 retail units, all with access to underground parking. Orchid Gardens is in its final stage of completion, which is scheduled for June 2012, slightly later than originally intended.

Under the terms of the Revised Facility, repayment of the principal amount of the facility is to be made in the following tranches:

   1.    EUR3.4 million by the end of 2012; 
   2.    EUR10.8 million by September 2013; 
   3.    EUR5.7 million by March 2014; and 
   4.    EUR1.5 million by April 2016.

Additionally the following conditions have been revised. The bank has:

1. agreed to accrue the current interest due of EUR0.3 million until 31 May 2012, which will be rolled up into the aggregate principal amount due under the Revised Facility; and

2. requested additional collateral being provided to a value of EUR2.8 million, by no later than 30 April 2012, in the form of a second mortgage on the following assets:

-- the apartments for sale in Orchid Seaside apartments stage 3 (approximately 55 apartments); and

   --     the land for stage II of the Orchid Seaside project.

Commenting on the credit facility, Guy Meyohas CEO of Orchid Developments said:

"This revised credit facility will enable Orchid to market the development for an extended period which is helpful in the current economic climate. Orchid Gardens has already received a healthy level of interest, having secured preliminary agreements on a proportion of the residential and office space."

Ends

 
Contacts: 
Orchid Developments                         +35 92 981 
 Guy Meyohas                                      9955 
 
 Shore Capital and Corporate Limited       +44 20 7408 
 Bidhi Bhoma / Toby Gibbs                         4090 
 
 MHP Communications                        +44 20 3128 
 Reg Hoare / Tim McCall / Vicky Watkins           8100

Notes to Editors:

Orchid Developments Group Ltd (OCH.L), which listed on the AIM market in July 2005, was established with the aim of generating value for shareholders by investing in real estate and leisure business opportunities initially in Bulgaria.

The company is active in all principal sub-sectors of the Bulgarian real estate and leisure markets and currently holds three residential and six commercial property developments in Sofia and Varna. Its principal investment is the Grand Mall in Varna, a leading shopping mall in Bulgaria.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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