23/2014 Conclusion of a conditional significant agreement by the CELTIC PROPERTY DEVELOPMENTS SA and its subsidiaries

Management Board of CELTIC PROPERTY DEVELOPMENTS S.A. (the “Company”) announces that on 10th of September 2014, the Company signed an investment agreement (the “Agreement”) the joint venture in the field of realization of complex of buildings with services and associated infrastructure in Warsaw Ursus district.

The agreement was concluded between:
1) CELTIC PROPERTY DEVELOPMENTS S.A. in Warsaw,
2) Challenge Eighteen sp. zo.o. in Warsaw (the “Subsidiary”),
3) 1/95 Gaston Investments, a limited liability company with its registered office in Warsaw (the “Subsidiary”, “Limited Partnership”)
4) Lakia Enterprise Ltd in Nicosia (Cyprus) (the “Subsidiary”),
and
5) Unibep S.A. in Bielsk Podlaski,
6 Unidevelopment S.A. in Warsaw.

The subject of an Agreement is joint realization of investment on the part of the property (the “Property”) belonging to Celtic Property Developments S.A. group of companies ie. 1/95 Gaston Investments company with limited liability company in Warsaw (the “Limited Partnership”).

Above Property consist of plot No. 95, No. rpm. Reg. 2-09-09, with an area of 3.6811 hectares and is located at Traktorzystów street in Warsaw (Warsaw district – Ursus).

On the Property there will be implemented in two stages, the construction of complex of buildings with services together with associated infrastructure, with assumed area of approx. 20,000 m2 of usable space (the “Project”), the general contractor will be Unibep S.A. and the company Unidevelopment S.A. will supply replacement investor services over the Project. The agreement also includes conduction of marketing activities related to the sale of apartments units build under the projects, and then on the total sales of usable space and the principle of profit sharing.

Participation of CELTIC PROPERTY DEVELOPMENTS S.A. in the Project realization consists of:

a) the implementation of Project on Property belonging to the Company’s limited partnership,
b) provision by Gaston Investments sp. o.o. financial and operating controls services on the Project and supervision over Unibep S.A. as general contractor.

The Agreement shall enter into force subject to the parties agree (accept) all the Annexes to the Agreement until 13 October 2014. In addition – as regards the accession Unidevelopment S.A. to the limited partnership company – Agreement enters into force, subject to the approval of the President Office of Competition and Consumer Protection of the concentration of entrepreneurs.

The agreement doesn’t meet the criterion of being recognized as a significant agreement because of the value not exceeding 10% of the equity of the Issuer, which by the end of the first half of 2014 years amounts to 305 598 thousand PLN.

Legal basis:
§ 56. 1 item 1) of the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies of 29 July 2005. (Ie. OJ of 2013. Pos. 1382, as amended.)

Representatives:
1. Elżbieta Donata Wiczkowska, Prezes Zarządu, 11 września 2014 r.