ABL Ablon

 

TIDMABL 
 
RNS Number : 6504M 
Ablon Group Limited 
03 February 2009 
 

 
 
 
 
ABLON GROUP LIMITED 
 
 
Valuation and Operations Update 
 
 
Ablon Group Limited ('Ablon' or 'the Company'), a leading real estate owner and 
developer in Central and Eastern Europe, today updates shareholders on its 
valuation as at 31st December 2008 and its operations throughout Central and 
Eastern Europe (CEE). This update is in advance of Ablon's preliminary results 
for the year ended 31st  December 2008, which are expected to be announced 
on 25th March 2009. 
 
 
Valuation Update 
 
 
In line with general real estate market conditions, the valuation by King Sturge 
and GVA as at December 2008 has demonstrated that the gross asset value of 
Ablon's portfolio has decreased. For the six months ended 30 thJune 2008, gross 
assets were valued at EUR654.2m. Gross assets under management, as at 31st 
December 2008, stood at EUR593m, representing a 9.4% reduction in total. 
 
 
Property Overview 
 
 
Outlined below are the three principal development projects that Ablon continues 
to progress with: 
 
 
1. Airport City Phase 2 - Budapest - the second building of 9,400 SQM - almost 
completed. The company is still to sign a lease contract for this stage of the 
development. 
 
2. Blaha Center - Budapest - mixed-use, hotel and retail project - construction 
on going. Completion expected by the year end. 
 
3. Viva Residence - Prague - residential project of 162 units - construction on 
going. Completion expected by the year end. A total of 28 units have been sold 
already. 
 
 
The Board of Directors of Ablon has decided to put all other development 
projects on hold until a general improvement in the market. 
 
 
Investment Market 
 
 
Values across the real estate market in Central and Eastern Europe have 
continued to come under pressure. Against a backdrop of uncertainty in both the 
financial and real estate markets, Ablon continues to experience a correction 
across its portfolio. As is well documented, the availability of credit 
facilities has all but dried up and transactional volumes have slowed quite 
considerably. Ablon is not immune from these events, hence the valuation decline 
and strategic pausing of developments. 
 
 
Dennis Twining, Chairman of Ablon commented: 
 
 
" In the current economic climate, the Board believes it in the interests of its 
shareholders to put a hold on our development projects. Until the time comes 
that credit lines from the banks are reinstated, we will only undertake minor 
refurbishment and design projects." 
 
 
" A key advantage for Ablon is that we have an existing 13 completed and income 
generating properties. We have a strong balance sheet with relatively low 
gearing which will put us in a favourable position going forward. We will 
concentrate our efforts on maintaining income and only undertake capital 
expenditure project when necessary." 
 
 
" We cannot control general market conditions. What we can do is manage our cash 
flow through prudence and conservatism. We firmly believe that we can weather 
the current economic climate and that we will be in a strong position when a 
recovery does occur." 
-ends- 
Date: 3rd February 2009 
 
 
For further information contact: 
 
 
+----------------------------------------+ 
| Ablon Group Limited                    | 
+----------------------------------------+ 
| Daniel Avidan, CFO                     | 
+----------------------------------------+ 
| Tel. +36 1 225 6600                    | 
+----------------------------------------+ 
| KBC Peel Hunt                          | 
| Capel Irwin / Alex Vaughan             | 
| Tel: 020 7418 8900                     | 
| City Profile Group                     | 
+----------------------------------------+ 
| William Attwell                        | 
+----------------------------------------+ 
| Tel: 020 7448 3244                     | 
+----------------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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