3/2017 Conclusion of conditional agreement

Board of CPD SA (the “Company”) announces that 22 February 2017, the Company signed an investment agreement (the “Agreement”) for a joint venture realization of complex buildings with services and associated infrastructure in Warsaw’s Ursus district.

The Agreement was concluded between:

1. CPD SA in Warsaw,
2. Challenge Eighteen limited liability company in Warsaw (the “Subsidiary”),
3. 4/113 Gaston Investments, a limited liability limited partnership with its registered office in Warsaw (the “Subsidiary”, “Limited Partnership”),
4. Lakia Enterprise Ltd in Nicosia (Cyprus) (the “Subsidiary”),
and
5. Unibep SA in Bielsk Podlaski,
6. Unidevelopment SA in Warsaw.

The Agreement provides for the joint implementation of investment building on the property (the “Property”) owned by the Group CPD SA ie. the company 4/113 Gaston Investments limited liability limited partnership in Warsaw, which is the perpetual usufructuary of plots No. 113/1, 113/2, 113/4, 113/5 no. rpm. reg. no. 2-09-09, with an area of 4,944 ha and is located at Traktorzystów Street in Warsaw (Warsaw district – Ursus).

On the part of the Property of area of approx. 1.36 ha, the construction of complex buildings with services, together with the accompanying infrastructure (the “Project”) will be implemented in two stages. The general contractor is the company Unibep SA and the company Unidevelopment SA will provide services of investor representation.  As part of the projects Unidevelopment SA will join the Company’s limited partnership as a limited partner. The Agreement also includes marketing activities related to the sale of units produced under the Projects, and then on the total sales of usable space of the Project and profit division regulations from the sale of Project.

Participation of CPD SA Group in the Project relay on:

a) implementation of the Project on the Property belonging to the Limited Partnership,
b) the provision by Gaston Investments sp. o.o. of financial and operational control and supervision of Unibep SA as the general contractor.

The Agreement shall enter into force, subject to the acceptance of all the Annexes to the Agreement till 31  March 2017 by her sides. In addition – as regards the accession of Unidevelopment SA to the Company’s limited partnership – an agreement will enter into force subject to the approval of the President of Competition and Consumer Protection Office for the concentration of entrepreneurs or the decision of President of the OCCP to discontinue the proceedings due to the fact that the transaction is not a subject to notification to the President of the OCCP, or the deadline for statutory release of the above authorization if, before the expiry of that period President of the Office does not issue any decision or ruling by the Court Antimonopoly the consent of the concentration on appeal – in whichever occurs first.

This Agreement meets the criteria to recognize as a significant agreement because its value exceeds used by the Company criteria for determining significant agreements, ie. 10% of the Company’s equity, which as at the end of the third quarter of 2016 amounts to 452 224 000 PLN.

Legal basis:
Art. 17 paragraph. 1 MAR – confidential information

Signatures of the persons entitled to representation:
1. Elżbieta Donata Wiczkowska, President of the Board, 22 February of 2017