Legal basis: Art. 17.1 of the Market Abuse Regulation - confidential information
The Management Board of LC Corp S.A. (“Issuer”) reports that today (i.e. on 14 July 2016), the Issuer and the Issuer’s subsidiary – LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością Projekt 22 Sp. k. with its registered office in Wrocław (“Investor”), whose the Issuer is directly and indirectly (through its subsidiary LC Corp Invest XVII sp. z o.o.) the sole shareholder, concluded with an entity unrelated to the Issuer - Budimex S.A. with its registered office in Warsaw a memorandum of understanding (“Memorandum of Understanding”), pursuant to which Budimex S.A. undertook to submit a binding offer for the construction of an office and service building at 16-20 Skierniewicka Street in Warsaw (“Investment”), conducted by the Investor. Pursuant to the concluded memorandum of understanding, the offer of Budimex S.A. will be submitted at the same unit prices increased by 5% of the net value of those prices in relation to the offer of Budimex S.A. for the performance of the “Retro Office House” investment conducted in Wrocław by another subsidiary of the Issuer, i.e. LC Corp Invest XVII Spółka z ograniczoną odpowiedzialnością Projekt 21 Sp. k. (the Issuer informed about the conclusion of the agreement for general contracting of this investment in current report No. 73/2016). The Investor and the Issuer also undertook to entrust Budimex S.A. with the performance of the Investment provided that Budimex S.A. submits an offer on the above-mentioned terms and the parties negotiate the remaining terms and content of the agreement for general contracting of the Investment, which will not differ significantly from the agreement for the “Retro Office House” investment in Wrocław.
The subject of the Memorandum of Understanding is also the confirmation of the fulfilment of the conditions, i.e. acceptance by Budimex S.A. of the fit-out plan for the lease area with regard to which Budimex S.A. concluded on 29 April 2016 with the Investor and with the participation of the Issuer a lease agreement for the office area in the building under the performed Investment, without the approval of which Budimex S.A. could withdraw from the lease agreement. The subject of the lease agreement is the delivery by the Investor to Budimex S.A. for a period of 7 years from the date of handover of the lease agreement of an area of approx. 7,000.00 m2, increased by the add-in factor, i.e. a total area of approx. 7,343 m2, which constitutes approximately 30% of the total expected lease area of the building constructed under the planned Investment. The rent and other payments resulting from the lease agreement were determined on market terms.
In the Issuer’s opinion, the information about the conclusion of the Memorandum of Understanding is confidential pursuant to Art. 7 of the Market Abuse Regulation due to the fact the expected value of payments under the agreements described above exceeds 10% of the Company’s equity.