Investor relations

Legal basis: Article 17 section 1 of MAR – confidential information 

Subject of the report: Change of the entity financing the implementation of the Hanza Tower investment in Szczecin  

The Management Board of J.W. Construction Holding S.A. with its registered office in Ząbki ("Company") informs that on 7 February 2019 a subsidiary of the Company, the company under the name Hanza Invest S.A. with its registered office in Ząbki ("Investor") changed the entity providing financing for a part of the costs of the Hanza Tower investment in Szczecin ("Investment"), consisting of the construction of a 30-storey building with a usable area of nearly 22,000 m2 of flats and a commercial area (retail, office, service and conference space) of almost 11,000 m2 in Szczecin at Wyzwolenia Avenue and Odzieżowa St.

On 7 February 2019, the Investor dissolved by mutual consent the agreement of 10 February 2017 with Alior Bank S.A. with its registered office in Warsaw on granting the Investor the following loans: investment loans in the amount of PLN 138,789,712 and VAT loans in the amount of PLN 3,000,000.

 On 07 February 2019. The Investor concluded an agreement with Bank Ochrony Środowiska S.A. with its registered office in Warsaw ("Bank") under which the Bank granted the Investor a revolving credit in the amount of PLN 48,000,000 ("Loan") to cover part of the costs of the Investment. 

Material terms and conditions of the Loan: 

1) the final repayment date of the Loan was set at 31 March 2021.  

2) the interest rate is variable in monthly periods based on WIBOR 3M base rate increased by the Bank's margin;

3) legal security for the Loan :

• contractual mortgage up to the amount of PLN 72,000,000.00 on the real estate on which the investment is realized, established in the first place;
• financial pledge established on receivables from bank accounts maintained by the Bank for the Investor to service the Investment;
• power of attorney granted to the Bank by the Investor to accounts held with the Bank and to block funds accumulated on accounts in cases specified in the loan agreement;
• blockade of funds accumulated on accounts related to servicing the Investment;
• money transfer to secure cash liabilities (existing and future) resulting from all concluded agreements, including: (i) insurance agreements concluded in connection with the execution of the Investment; (ii) Agreements with the General Contractor; (iii) agreements concerning the preparation of projects;
• Investor's statement on submission to the rigour of enforcement under Article 777 of Kodeks Postępowania Cywilnego (the Code of Civil Procedure) up to the amount of PLN 72,000,000.00 in favour of the Bank as a security for the repayment of principal, interest and all costs related to the collection of receivables under the loan granted;
• Surety granted by the Company for the Investor's liabilities on account of the loan taken out with the Bank together with submission to the rigour of enforcement under Article 777 §1(5) of the Code of Civil Procedure up to the amount of PLN 72,000,000.00;
• Agreement under which the Company will support the Investor in the event of exceeding the costs of implementing the investment. 

 4)     Loan is launched, inter alia, after: 

• the establishment of legal collateral for the Loan;
• Submission of certificates of no arrears with regard to taxes and social security contributions;
• having documented the Company’s contribution in the amount specified in the loan agreement;
• obtaining the assumed threshold for the conclusion of agreements concerning premises developed in the Investment;
• Presentation of the preliminary report prepared by an independent Technical Advisor stating the completeness of the formal and legal documentation, the progress of works, the correctness of the adopted cost assumptions, feasibility of the Investment in the assumed budget and schedule.