30/7/2008 GTC wins tender to develop new Real Estate Project in Hangzhou

Amsterdam, 30 July 2008 - International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V. (GTC RE) has won an auction to acquire a land plot of approximately 10,400 sqm with construction rights of approximately 109,000 sqm  in the city of Hangzhou in China. Hangzhou is the fifth city in China in which Kardan will deploy real estate activities.

GTC RE, through its 100% subsidiary GTC Real Estate China Ltd (GTC China), won the auction together with a local partner - Geely Group Co. Ltd (Geely), the largest private automobile manufacturer in China. Geely will hold 40%, while GTC China will hold 50% of the project. The remaining 10% will be held by a third partner. The project completely fits GTC’s strategy to invest in the Tier 2 and 3 cities, where GDP growth is higher than in cities like Shanghai and Beijing.

The three partners intend to develop a so called mixed use project on the land plot, mainly residential (84,000 sqm) and 25,000 sqm for retail and offices. The consideration for the land will amount to approximately EUR 40 million. The costs for the development of the total project are estimated to amount to approximately EUR 155 million. Beginning of construction is expected during 2009 and the construction will take approximately 3 years.

Hangzhou (175 km south west from Shanghai) is the Capital of Zhejiang province, one of China's wealthiest and most heavily populated provinces and home of over 5 million people. The project is located in the Binjiang district, with a unique view on the Qiantang river, close to the city center and approximately 20 km from the International Airport.

Including this project, GTC China develops in 5 cities a total of 2.7 million sqm of residential and retail/commercial property, together with its local partners.  

GTC RE, the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC Investments B.V., in China through its 100% subsidiary GTC China  and as recently announced in India. GTC RE’s shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 64.6% stake in GTC RE.