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Current report 7/2017

Legal basis: Article 17(1) of MAR – confidential information

Topic of the report: conclusion by a subsidiary of a significant loan agreement

The Management Board of the company styled J.W. Construction Holding S.A. with its registered office in Ząbki (‘Company‘) hereby reports that on 10 February 2017, the Company’s subsidiary styled Hanza invest S.A. with its registered office in Ząbki (‘Investor’) entered into an agreement with Alior Bank S.A. with its registered office in Warsaw (‘Bank‘) under which the Bank granted the Investor: an investment credit of PLN 138,789,712 for VAT of PLN 3,000,000 (collectively: ‘Credit’).

The credit was contracted to finance and refinance the expenses relating to the implementation by the Investor of the Hanza Tower investment project in Szczecin (‘Investment Project’).

The project consisted in the construction of a 30-storey building with floor space of housing units of nearly 22 thousand m2 and commercial area (aparthotel, commercial, office, service and conference-related area) of nearly 11 thousand m2 in Szczecin at Al. Wyzwolenia and at Odzieżowej streets.

 

Essential terms of the Credit:

1) the final date for repayment of the Credit was set for 30 September 2020. 

2) the interest rate is a variable rate in monthly periods based on the WIBOR 1M base rate increased by the Bank’s margin;

3) legal security of the Credit

  • Contractual mortgage of up to PLN 212,684,568 (in words: two hundred and twelve million six hundred and eighty-four thousand five hundred and sixty-eight Zloties) on the real property on which the investment project is being implemented, established in the first place;
  • registered pledges and financial pledges established on monetary claims from the bank accounts kept by the Bank for the Investor as part of Project management;
  • power of attorney granted to the Bank by the Investor to the accounts related with the implementation of the Investment and to block the funds accumulated on the accounts indicated in the credit agreement;
  • blockade of funds accumulated in bank accounts relating to the management of the Investment Project;
  • a transfer as a security of (existing and future) monetary claims resulting from all actual agreements, including from: (i) collateral agreements concluded with respect to the implementation of the Investment Project; (ii) Agreements with the General Contractor, (iii) agreements with buyers of premises; (iv) agreements on design drafting.
  • Investor’s declaration on submission to execution under Article 777 §1 point 5 of the Civil Procedure Code up to PLN 283,579,424 (in words: two hundred and eighty-three million five hundred and seventy-nine thousand four hundred and twenty-four Zloties) for the Bank as a security of repayment of the capital, interest and all consts relating to the claim for repayment of monetary claims regarding the credit granted.
  • The suretyship granted by the Bank for the Investor’s liabilities on account of the credit taken towards the Bank up to PLN 141,789,712 and submission to execution under Article 777 §1 point 5 of the Civil Procedure Code. 
  • The contract for submission of the existing and future monetary claims granted by the Company to the Investor, and submission to execution under Article 777 of the Civil Procedure Code. 
  • The financial and registered pledges on all shares of the Investor owned by the Company for the benefit of the Bank as a security of the credit, and submission to the execution procedure.
  • Contract for the support to be provided by the Company to the Investor in case the costs of the Investment are exceeded and reach up to 10% of the costs of the Investment Project
  • Power of attorney granted by the Investor to the Bank in the form of a notarial deed, to conclude, on behalf of the Investor, preliminary and final contracts of sale.

 

4)     the Credits are disbursed, inter alia, after:

 

  • legal security of the Credit has been established;
  • submission of certificate of no arrears with respect to taxes and social security;
  • provision of evidence confirming that the Investor has made own contribution in the amount fixed in the credit agreement;
  • achievement of the target for conclusion of contracts relating to premises carried out as part of the Investment Project;
  • presentation of a preliminary report drafted by an independent Technical Adviser which confirms the completeness of the formal legal documentation, the progress of works, accuracy of the adopted cost assumptions, feasibility of the Investment Project in the assumed budget and work schedule.

 

The basis for submission of this report is the relevance of the concluded credit agreement to the operations of the Company’s Group due to the amount of the Credit and to the assurance (through its conclusion) of financing of costs of the Investment Project.