Investor relations

Legal basis: Art. 17, par. 1 of MAR – confidentialReport Subject: establishment of a mortgage

The Management Board of the Company named J.W. Construction Holding S.A. with its registered office in Ząbki (“the Company”) hereby informs that on 19 October 2016 the company acquired information on the entry - on 18 October 2016, by the District Court for Warsaw Mokotów in Warsaw, 9th Land and Mortgage Register Division in Section IV of the land and mortgage register No. WA3M/00441105/7, kept for land plots No. 44, 43, 102/1, 101/1, 100/1, 98/2, 97/1, 95, 94, 91, 90/1, 89/1, 92/1, 93/1, 98/3, 98/4 and 98/5 covering the total area of 67,167 m 2, located in Warsaw close to Zdziarska and Ostródzka streets (“real estate”) - of a mortgage in the amount of PLN 74,250,000 (“Mortgage”) for the benefit of Bank Ochrony Środowiska S.A. with its registered office in Warsaw (“Bank”).

The mortgage constitutes a collateral of the loan of PLN 49,500,000 granted by the Bank to the Company for the development of the Osiedle Zielona Dolina housing estate (Stage II). The loan agreement was reported by the Company in its current report no. 13/2016 on 4 Oct. 2016.

In the real estate, the Company has been executing an investment consisting in the construction of 25 multi-family residential buildings with 567 apartments, and the accompanying infrastructure including ground facilities and parking places in underground garages.

The mortgage secures the loan granted for the financing of a part of the construction costs.

There are no links between the Company, its management, or supervisory boards.

This event was deemed relevant in the Company’s opinion.