Investor relations

Report concerns:
Change to the established 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 13 July 2009 the Company learned about entering by the District Court for Warsaw Mokotów, 15th Land and Mortgage Division on 9 July 2009, in section 4 of the Land and Mortgage Register No. WA6M/00442328/4, maintained by the said Court for the land property in perpetual usufruct of the Company, designated as a record parcel No. 37/7 from the precinct 3-07-19, with the total surface area of 18,307 sq m, located in Warsaw at ul. Korkowa 39 (henceforth the Property), a change to the established mortgages, for the benefit of Bank Polskiej Spółdzielczości Spółka Akcyjna Oddział Regionalny w Warszawie (Regional Branch in Warsaw) (henceforth the Bank), to the following effect:
1/ they are currently collective mortgages co-encumbering other Company’s properties
2/ the values of the established mortgages:
- contractual ordinary collective mortgage increased to the amount of PLN 50,000,000 from the amount of PLN 16,000,000
- contractual collective capped mortgage increased to the amount of PLN 15,000,000 from the amount of PLN 3,520,000 (henceforth the Mortgages).

The Mortgages co-encumber, which was reported by the Company in Current Report 23/2009 of 6 June 2009, also the following properties:
- 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.

The Company is carrying out a development project on the Property 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 increased mortgage exceeded the Polish zloty equivalent of EUR 1,000,000, translated at the average exchange rate of the National Bank of Poland as at the day the criterion of the disclosure obligation had been met.