Investor relations

Report concerns:
Making a significant agreement

Report’s text:
Acting on the basis of § 5 sect. 1, point 3 of Minister of Finances resolution dated on October 19th 2005 concerning the valid and periodic information conveyed by issuers of securities (Dz. U. No. 209, poz. 1774( (“Decree concerning valid and periodical information”) J.W Construction Holding S.A. with headquarters in Ząbki (“Company”) hereby informs that on December 6th 2007 it made with natural person (“Natural Person”) a preliminary sale agreement which subject is a construction, making separate property rights and sale by the Company housing premises as well as share in usable local – multi-boxes garage situated in Warsaw at Górczewskiej Street together with a share in common parts of the building as well as adequate share in co-exploitation of the perpetual usufruct.

Making the above-mentioned agreement resulted in arising at the Company’s’ side an obligation of transferring the valid report on the basis of § 5, section 1, point 3 with reference to § 2 section 2 of the Decree concerning the valid and periodical information with reference to the fact that in the period from December 5th 2007 until December 6th 2007 the Company made with the Natural Person, total number of 88 preliminary sale agreements with provisions included similar to those described above (together called “Preliminary Sale Agreements”). The subject of the Preliminary Sale Agreements there is a construction, making a separate property right and sale by the Company 88 housing locals and shares in usable premises – multi-box garages situated in Warsaw at Górczewskiej Street together with a share in common parts of the building as well as adequate shares in co-exploitation of the land perpetual usufruct.

Moreover, on December 3rd 2007 the Company made with the Natural Person an obligating agreement (“Obligating Agreement”) concerning transfer of property rights to a property situated in Krzywonoga city in Pasym commune of total area 3,9885 hectares which consists of two built up parcels of land marked: no. 461 and 458, included in Mortgage Book No. 162821(”Property”), which agreement makes the highest value among agreements which had been made by the Company with the Natural Person in the period of last 12 months. The Company plans to use the Property when executing the strategy in scope of the hotel activity. The Obligating Agreement was made under a suspending condition that the Agency of Agricultural Properties (“Agency”) won’t utilize its right of pre-emption of the Property resulting from legal regulations. Making the agreement transferring property rights to the Property shall be executed within 14 days from the day of delivery by the Natural Person a paper from the Agency confirming that the Agency shall not demand the right of the pre-emption, however, not later than on January 31st 2008. The price of the Property sale is 3.500.000 PLN but the part of the Property’s price was recognized as a part of payments according to the Preliminary Sale Agreements. Shall the Agency utilize its right of pre-emption, part of the Property price which was included as a part of payment according to the Preliminary Sale Agreements shall be paid into the Company's bank account within 14 days from reception from the Agency a paper concerning making the right of pre-emption and the remaining part is to be paid by the Natural Person within 7 days from being notified by the Company about possibility of based on protocols transfer of premises according to provisions included in the Preliminary Sales Agreements.

The Company’s liabilities determined in the Preliminary Sale Agreements shall be executed provided that the Natural Person settles its all financial liabilities. Plighted agreements of housing premises sale and shares in usable premises – multi-box garage defined in the Preliminary Sales Agreements shall be made within 6 months from the day the Company is awarded with legally valid permission for exploitation.

The Natural Person shall be entitled to penalty fee in amount of 0,01% per any day of Company’s delay in issuing a local to be accepted more than 365 days a year in relation to the date quoted in the Preliminary Sale Agreements, however, the penalty fee excludes the possibility of claiming pretension by the Natural Person under general conditions. Shall the Company withdraw or terminate the Preliminary Sale Agreements, the Natural Person shall pay the penalty fee in amount of 4,9% of a price concerning a particular local together with a parking box.

Criteria of recognition the Preliminary Sales Agreements and the agreement obligating to transfer the property rights to the Property dated on December 3rd 2007 to be significant agreement there are regulations included in § 2, section 2 with reference to § 2 section 1, point 51) of the Decree concerning the valid and periodical information since the total value of the Preliminary Sales Agreement and the agreement obligating to transfer the property rights to the Property is 43.318.883,79 PLN.