Trading and Operational Update (5630Z)
March 19 2012 - 2:00AM
UK Regulatory
TIDMOCH
RNS Number : 5630Z
Orchid Developments Group Ltd
19 March 2012
19 March 2012
Orchid Developments Group Ltd.
("Orchid" or the "Group")
Trading and Operational Update
Orchid Developments Group Ltd (AIM: OCH), the Bulgarian focused
property developer and investor, today provides the following
trading and operational update in relation to its portfolio of
projects since the trading statement issued on 10 January 2012.
Grand Mall Varna
A number of other new tenants have been signed since the
beginning of the year, of which four were announced on 13 February
2012 (Amigo, Swissiea, Bushman and L Collection). In addition, BM
Rialto (a well known local restaurant chain) and Alfa Mebel (a
local furniture producer) have now become tenants. These new names
join international brands Bershka, Carrefour, H&M, McDonalds,
Mango, Nike and Zara who are already tenants.
The Grand Mall Varna now has in excess of 81.6% (40,505 sqm) of
its total area leased. The new tenants are due to commence trading
during April and May 2012.
Orchid Hills Varna & Sofia
Since the beginning of the year the company signed 29 new
pre-contracts for sale of apartments in both developments. 92 units
remain for sale at Orchid Hills Varna and 12 units remain at Orchid
Hills Sofia.
Orchid Gardens Varna
The Group is in the final stages of further restructuring of the
loan facility in relation to this project in order to improve its
repayment terms and drawdown conditions. When the restructuring is
completed, the revised terms are expected to facilitate completion
of the project.
Other projects
The Group's management team continues to progress and pursue
measures to realise value from certain of the Group's assets. A
further announcement will be made once any binding commitments are
entered into.
Trading update and financial position
As previously stated, the Board is cognisant of the large gap
between the Group's market capitalisation and net asset value. The
Board remains committed to closing this gap, in part through
delivering on operational and financial milestones and in part
through improving the understanding of Orchid's business and
prospects.
The Group is able to continue to operate within its current
levels of funding in the immediate term. However, the quantum of
free cash flow which may be generated in the medium term from the
sales of apartments and other assets remains unclear. In addition,
the margin of forecast available cash over requirements, as stated
on 10 January 2012, remains small. Therefore, the Board is
currently considering the best manner in which to address any
potential future deficiency in the Group's available working
capital. A further announcement will be made in due course.
2011 Annual Results
Orchid intends on announcing its final results for the year
ended 31 December 2011 on 25 April 2012.
Guy Meyohas, Chief Executive Officer of Orchid, said:
"We continue to make good progress letting the remaining space
at the Grand Mall and selling apartments, despite economic
conditions remaining very difficult.
"The Board continues to be vigilant in managing the Company's
cash flow, whilst aiming to complete projects under construction
and seeking to sell assets."
Ends
Contacts:
Orchid Developments www.orchid-dev.com
Guy Meyohas +35 92 981 9955
Shore Capital and Corporate Limited
Bidhi Bhoma / Toby Gibbs +44 20 7408 4090
MHP Communications
Reg Hoare / Tim McCall / Vicky
Watkins +44 20 3128 8100
Notes to Editors:
Orchid Developments Group Ltd (OCH.L), which listed on the AIM
market in June 2005, was established with the aim of generating
value for shareholders by investing in real estate and leisure
business opportunities initially in Bulgaria.
The company is active in all principal sub-sectors of the
Bulgarian real estate and leisure markets and currently holds three
residential and six commercial property developments in Sofia and
Varna. Its principal investment is Grand Mall Varna, Bulgaria's
leading shopping mall.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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