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TPD: The Way Forward

12.12.2007 15.13,

Following the meetings held on December 11, 2007, AS Trigon Property
Development (‘TPD') hereby announces that subject to receiving the necessary
remaining approvals with respect to the relevant detail planning, it intends to
call an Extraordinary Shareholders' Meeting at the beginning of February 2008
to obtain shareholder approval for the share issue which would be structured so
as leave TPD in control of a property development project which will be known
as “Gate Tallinn”. The Gate Tallinn project comprises a 620,000 sqm land area
located adjacent to the Tallinn city border, at the cross-roads of the Via
Baltica and the planned inner ring-road of Tallinn. The project which has been
worked on for almost three years by Trigon Capital involves building rights of
around 240,000sqm, of which approximately 115,000sqm would be dedicated to
creating the largest Baltic retailing mega-centre for large-format retailing
concepts, the rest will be devoted to warehousing, logistics and office space.
This novel concept is increasingly popular internationally but has not yet been
present in the Baltic states. Elektriraudtee plans to establish a new train
station in connection with the project for which also new road connections have
been agreed with Maanteeamet. The project will involve the creation of new jobs
and road connections from which all nearby local governments will benefit. All
tenanting related work in Gate Tallinn has been mandated to Colliers
International (http://www.colliers.com/) who is currently marketing the project to
potential tenants through its international offices. . The early response from
potential tenants, including major international retailers, has been very
favorable. The conceptual and architectural work on the Gate Tallinn concept
has been carried out by leading Scandinavian property consultants: TP-Group
(http://www.tpgroup.com/) and CEJ Architects (http://www.cej.com/).
Further details on the Gate Tallinn project and the planned first Baltic retail
 development power-centrecan be obtained by downloading the presentation
from the following web link: Gate Tallinn

The Gate Tallinn project is currently owned by OÜ Chester Universal whose
shareholders are willing to contribute their holdings in the said company to
TPD in exchange for shares in TPD. For that purpose new shares in TPD need to
be issued to the shareholders of OÜ Chester Universal. The Extraordinary
Shareholders Meeting of TPD will be called to effect this. The target date for
the Extraordinary Shareholders' Meeting of TPD to approve the planned new share
issue is February 4, 2008. The proposed share issue size will be around EUR
75.9-127.3 million. As part of the new share issue the existing shareholders
will be given the right to subscribe for new shares in TPD in cash in
proportion to their current shareholding in TPD (so that they can retain their
ownership percentage in the company if they so wish). OÜ Trigon Wood (currently
owning 59.62% of TPD) will not subscribe for its part of the new share issue.
This secures that a sufficient amount of new shares will be available for
subscription by the shareholders of OÜ Chester Universal. The corresponding
allocation of new shares, subject to approval by the shareholders of TPD, will
be subscribed instead by the shareholders of Gate Tallinn (currently
incorporated as OÜ Chester Universal) with a non-monetary contribution
consisting of their shares and shareholder loan-notes in Gate Tallinn. The
value of the non-monetary contribution will be determined on the basis of an
independent expert opinion provided by Colliers International. The management
will also propose to shareholders that the share issue would be carried out at
a price per share which shall be equal to the higher of the following: (i) the
net asset value per share derived from the value of the current property
holdings of TPD (the Niidu land area) as determined by Colliers International,
or (ii) the 2-week weighted average share price of the TPD share on Tallinn
Stock Exchange before the date of the Extraordinary Shareholders' Meeting of
TPD. Colliers International has valued the Niidu land area at EUR 8.3 million
and the Gate Tallinn project at EUR 77.9 million. Taking into account existing
liabilities the Net Asset Value (“NAV”) of TPD is roughly EUR 8.1 million and
the NAV of OÜ Chester Universal is roughly EUR 75.9 million..

Following the completion of the planned new share issue it is the intention of
the management to immediately start preparations for a second share issue that
targets interested international investors. The purpose of the second share
issue is to raise funds for carrying out further investments in the Baltic real
estate development sector with the aim of taking advantage of the current
opportunities which are increasingly becoming available at depressed price
levels given the slow-down in the Baltic property sector.

Ülo Adamson
Chairman of the Supervisory Board
AS Trigon Property Development