3/2012 Amendment to the loan agreement with HSBC

The Management Board of CELTIC PROPERTY DEVELOPMENTS S.A. (the Company) hereby announces, that April 3, 2012 the Board has received signed 5th Amendment (the Amendment) to the loan agreement from 21 December 2006 (The Agreement). The parties of the Agreement are: Bank HSBC (HSBC Bank Plc and HSBC Bank Polska S.A.), subsidiaries of the Company: Blaise Investments sp. z o.o., Devin Investments sp. o.o., Lakia Investments sp. z o.o., Mandy Investments sp. z o.o., Robin Investments sp. z o.o. (Subsidiaries, Borrowers) as borrowers and Celtic Property Developments S.A., Blaise Investments sp. z o.o., Devin Investments sp. o.o., Lakia Investments sp. z o.o., Mandy Investments sp. z o.o., Robin Investments sp. z o.o as guarantors. This Amendment was signed with regard to the maturity of the existing loan on March 27, 2012, to refinance an existing loan in the amount of
EUR 12.500.000.

Pursuant to the abovementioned Annex, the following changes were introduced:

1) The parties agreed the term of repayment, including interest and other costs, on the March 27, 2014.
2) Subsidiaries are jointly and severally liable for payments of the mandatory installments of 104.000 EUR, payables on June 27, 2012, 27 September 2012, December 23, 2012, 27 March 2013, 27 June 2013, 27 September 2013 and December 23, 2013. The one-time final payment amounting to EUR 11.772.000 EUR will be paid on 27 March 2014.
3) Interests will be calculated on quarterly basis.
4) The interest rate was set at a variable rate of three-month interbank EURIBOR for deposits in EUR, increased by the margin of the Bank.
5) Mandatory prepayment – sale of a Property. If a Borrower decides to sell the whole or any part of the property to any person other then another Borrower, then such Borrower shall designate the proceeds from such sale for prepayment of the loans (together with accrued interests and applicable costs) in part or in full on the date when a Property is disposed of. Full repayment of the loans will be required if after such sale conditions set at the Financial Conditions Clause are not fulfilled.

Other clauses, including these on loan security, arising from the Agreement and from Annexes signed earlier, remain unchanged.

Criterion for the recognition of agreement as significant is the value of the loan, amounting to PLN 51.658.750 (calculated on the basis of the average rate of EUR published by NBP on 3 April 2012 of 4,1327 PLN/EUR), representing 10% of the Celtic Property Developments S.A. equity as at 31 December 2011.

Legal basis:
Art. 5.1.3. of the Decree of Minister of Finance dated 19th of February 2009 on current and periodic information published by issuers of securities and conditions for recognizing as equivalent information required by law of nonmember state (Journal of Laws from 2009 No 33 item 259 with subsequent amendments).

Signatures of the persons entitled to the Company representation:
1. Elżbieta Wiczkowska, Member of the Management Board, 03.04.2012
2. Christopher Bruce, Member of the Management Board, 03.04.2012