43/2016

Current report No. 43/2016
Date: 2016-09-08
Time: 10:55 p.m.

Subject: Changing the terms of the agreements between the Capital Group Polnord and Korporacja Budowlana Dom Sp. o.o. on the realization of housing projects

Legal basis: 17(1) of the Market Abuse Regulation - confidential information

The Management Board of POLNORD SA (the "Polnord"), with reference to the current report No. 61/2015 dated 10.11.2015., informs that on 08.09.2016. companies from the Capital Group of Polnord concluded with Korporacja Budowlana Dom Sp. o.o. ("KB Dom") annexes to agreements on realization of housing projects. By virtue of these annexes formula of realization of the agreements has changed from the substitute investor for the general contractor, and thus the amount of remuneration of KB Dom has been limited to remuneration for the general contractor. Modification of the existing organization of the investment process, resulted in a decrease in the total value of agreement from PLN 112.7 million to approx. PLN 111.8 million.

The highest value agreement, as amended in the above respect by annex of 08.09.2016, is the agreement of 10.11.2015. concluded between Polnord Warszawa Ząbki - Neptun Sp. o.o. (a 100% subsidiary company of Polnord) and KB Dom on the realization of a housing project in Ząbki near Warsaw. The responsibilities and the remuneration due to KB Home have been limited by annex to remuneration for the general contractor, estimated on net amount of PLN 37,545,969. Other terms of the agreement remain unchanged.

Above change is a result of the implementation, adopted by the Board of Polnord on 21.03.2016., the Strategy of Capital Group of Polnord. The undertaken actions are aimed at cost optimization in terms of inter alia processes of realization of development projects.

Legal basis: Art. 17 (1) of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market manipulation, and repealing Directive 2003/6/WE, 2003/124/WE, 2003/125/WE and 2004/72/WE.

SIGNATURES OF THE COMPANY'S REPRESENTATIVES
2016-09-08 Jerzy Kamiński Member of the Management Board
2016-09-08 Jerzy Kotkowski Member of the Management Board

POLNORD SA published this content on 08 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 09 September 2016 10:56:06 UTC.

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