Current report no: 47/2021
Management Board of Boryszew S.A. (Issuer) informs that on 8 November 2021 indirect subsidiary Eastside-Bis Sp. z o.o. based in Warsaw (Eastside) entered into a preliminary agreement of sale of an office property located in Warsaw at Foksal street No. 6 (Real Property) under which the parties committed to enter into the final sale agreement (Final Agreement) by 8 November 2022 for the net price of PLN 70 million. The conclusion of the Final Agreement will be preceded by a number of formal and technical circumstances. The transaction price was determined on an arm’s length basis according to a valuation performed by an independent appraiser.
Eastside is an entity holding a portfolio of commercial properties, the value of which on 30 June 2021 was approximately PLN 102 million. The acquisition of the Property will enable diversification of assets for rental. At the same time, given a positive evaluation of the prospects for the commercial lease market in the medium and long term and considering the arm’s length nature of the price, the transaction is justified by the interest of Eastside (and indirectly of the Issuer) and non-related shareholders.
Unipartner Spółka z o.o. is related to the Issuer through RKK Investments Spółka z o.o., a shareholder of the Company holding 49.99% of its share capital/number of votes. A member of the Supervisory Board of Eastside is also a manager of Unipartner Sp. z o.o. Furthermore, the Issuer reports that Unipartner Sp. z o.o. was granted loans by the Group companies, described in relevant periodical reports of the Issuer.
Eastside made an advance payment of approx. 85% of the price and reimbursement of that payment should the parties fail to conclude the final agreement was secured by establishing a mortgage on the Property and Unipartner Sp. z o.o. submitting to enforcement in respect of the obligation to return the advance payment.
The Preliminary Agreement does not contain any provisions regarding contractual penalties. The transaction will be financed with own funds of Eastside. The remaining terms of the Preliminary Agreement are consistent from the standards generally applied in such agreements.
The Issuer will announce the conclusion of the Final Agreement in a subsequent current report.
The aforementioned transaction is implemented irrespective of the ongoing review of strategic options for selected groups of assets, of which the Issuer informed already, including in current report No. 32/2021 and earlier reports.
Legal attitude: Article 17 section 1 MAR – Confidential information.
Signatures:
Wojciech Kowalczyk – President of the Management Board
Translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish version.