Kardan N.V. announces that its subsidiary GTC Real Estate Investment Croatia B.V. completed the purchase of 70% of the shares of a Croatian company owning land in Zagreb, Croatia. In exchange for the shares, GTC Croatia will provide the Croatian company with a shareholders loan in the amount of EUR 2.6 million. On 1 July 2004, Kardan announced signing a head of terms for this transaction.
GTC Croatia will develop on the land a shopping center of approximately 32,000 sqm and office space of approximately 8,000 sqm. GTC Croatia will manage the Croatian company and the development of the project.
Kardan, through GTC International B.V., indirectly holds approximately 20% equity interest in GTC Croatia.