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1/2/2008 GTC acquires rights to expand its mixed-use project in Changzhou

Amsterdam, February 1, 2008. International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V. (GTC RE) will purchase an additional land plot in the city of Changzhou, China, located next to the land plot that was acquired earlier this year. This implies an additional 90,035 sqm of land and approximately 252,000 sqm of building rights to be added to the project announced on January 17, 2008.

With this acquisition, the original land plot (of 104,000 sqm with building rights up to approximately 290,000 sqm) will be increased to a total of 194,035 sqm with building rights up to approximately 542,000 sqm. The consideration for the new land amounts to approximately EUR 16 million, bringing the total consideration for the land to EUR 34.4 million.

The project is mainly residential but will include approximately 68,000 sqm of commercial space (originally planned for 30,000 sqm). The costs of the total project will amount to approximately EUR 185 million. Due to the acquisition of the additional land site, the construction is expected to start earlier than planned, during the second half of 2008, and is estimated to take 5 years.

The enlarged project will be developed by GTC Real Estate China Limited (GTC RE China) (45%), Lucky Hope (45%) and another partner from Hong Kong who is already active in Changzhou (10%). 

Changzhou is centrally located in one of the richest provinces in China, Jiangsu province, with a population of 3.5 million, located 162 km west of Shanghai and 103 km south of Nanjing.

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 GTC Real Estate China Ltd, 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.