Investor relations

Report concerns:
Establishment of mortgages

Report’s text:
Acting pursuant to section 5.1.(1) of the Ordinance of the Minister of Finance on current and periodical reporting by issuers of securities and on conditions of accepting as equivalent of the information required by legal regulations of a non-member country of 19 February 2009 (Journal of Laws No. 33/2009, item 259) (henceforth the Ordinance), J.W. Construction Holding S.A., with its seat in Ząbki (henceforth the Company) hereby reports that on 5 May 2009 the Company received a Notification from the District Court for Warsaw, 9th Land and Mortgage Division of 27 April 2009 informing about entering on 27 April 2009, in section 4 of the Land and Mortgage Register maintained by the said Court for the following undeveloped properties owned by the Company:

- land properties located in Warsaw, Białołęka District, at ul. Aluzyjna, designated as record parcels No. 61/3, 61/4, 61/5, 61/6, 61/7, 61/8 from the precinct 4-01-27 with the total surface area of 15,369 sq m, entered in the Land and Mortgage Register under No. WA3M/00439732/4, WA3M/00430534/3, WA3M/00448890/5, WA3M/00446233/8, WA3M/00446234/5, and

- land properties located in Warsaw, Białołęka District, at ul. Lewandów, designated as record parcels No. 49, 50, 51, 52, 59/2, 59/3, 59/4, 59/5, 59/6, 60/3, 60/4, 60/5, 60/6, 60/7, 61 from the precinct 4-16-34 and land properties designated as record parcels No. 22, 23, 24, 25, 29, 31, 32, 33 from the precinct 4-16-39 with the total surface area of 34,393 sq m, entered in the Land and Mortgage Register under No. WA3M/00444169/4, WA3M/00445243/4, WA3M/00446166/7, WA3M/00445371/0, WA3M/00445255/1, WA3M/00445253/7, WA3M/00451696/9, WA3M/00444210/7 (henceforth the Property),

a contractual collective mortgage in the amount of PLN 50,000,000 and a capped mortgage in the amount up to PLN 15,000,000, established for the benefit of Bank Polskiej Spółdzielczości Spółka Akcyjna Oddział Regionalny w Warszawie (Regional Division in Warsaw) (henceforth the Bank).

The said mortgage co-encumbers also a land property being in perpetual usufruct of the Company, entered in the Land and Mortgage Register under No. WA6M/00442328/4 maintained by the District Court for Warsaw Mokotów, 15th Land and Mortgage Division, located in Warsaw at ul. Korkowa 39, on which the Company is carrying out a development project that consists in constructing a multi-family houses complex – “Osiedle Bursztynowe”, financed with the loan granted by the Bank.

The value of the Property is entered in the Company’s accounting books at its purchase price and does not exceed 10 % of the Company’s equity capital.
There are no connections between the Bank, or the persons managing the Bank, and the Company, or the members of its Management Board or Supervisory Board.
The criterion making the said mortgages subject to disclosure was their value. The amount of each mortgage exceeded the Polish zloty equivalent of EUR 1,000,000, translated at the average exchange rate of National Bank of Poland as at the day the criterion of the disclosure obligation had been met.