Conclusion of the Promised Contract of sale of property of Apator Powogaz S.A. in Poznan
With reference to current reports no 44/2020 and 71/2020, the Executive Board of Apator S.A. announces that on the 12th January 2021, Apator Powogaz S.A. concluded, with the entity from building industry ("Buyer"), the Promised Contract of Sale of the property located in the centre of Poznan.
The object of the Contract is the land property located at ul. Klemensa Janickiego 23/25 in Poznan with total area of 3.3 ha where the present headquarters of Apator Powogaz S.A. is located.
Under the above mentioned Contract the ownership right to the property was transferred to the Buyer at the price of PLN 63.5 million net. On the day of conclusion of the Contract transferring the ownership the Buyer will rent the property to the Company for the purposes of current activity till 28.02.2022 with the possibility of prolongation of the renting period till 30th April 2022. The property shall be released on the date of termination of the lease relationship.
The parties to the Contract confirmed that the deposit of PLN 9 million net was paid on 29.07.2020, after the conclusion of the Preliminary Contract. The remaining tranches will be payable on the following dates:
a) PLN 21 million net and 100% of VAT, calculated on the price of the property, will be paid within 2 business days of the conclusion of the Promised Contract,
b) PLN 12 million net within 5 business days from the day the Buyer obtains the final building permit for the first stage of the development planned on the property, however no later than by 31 May 2021,
c) PLN 21.5 million net on the day of completing the lease agreement and releasing the property to the Buyer.
Moreover, the Contract includes provisions on hedging the claims of Apator Powogaz S.A. by establishing mortgage up to the amount of PLN 34 million and the submission by the Buyer Apator Powogaz S.A. the statement on submission to execution under Article 777 of the Civil Procedure Code with the possibility to change the hedging in the amount of PLN 21 million to hedging in a form of bank guarantee, in which the beneficiary of the guarantee will be Apator Powogaz S.A.
Estimated influence of this transaction on net result of the Apator Group will be PLN 27 million.
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