TIDMOCH

RNS Number : 6619G

Orchid Developments Group Ltd

03 July 2012

03 July 2012

Orchid Developments Group Ltd.

("Orchid" or the "Group")

AGM Statement

Trading and Operational Update

Orchid Developments Group Ltd (AIM: OCH), the Bulgarian focused property developer and investor, , provides the following trading and operational update ahead of its Annual General Meeting being held later today.

Grand Mall Varna

A number of new tenants have been signed since the trading statement issued on 19 March 2012. These include:

   --     Bado (a Greek fashion chain) 
   --     Euphoria  (a multi brand local fashion store) 
   --     Inglot (a Polish chain of cosmetics stores) 
   --     Stefanel (a franchise store of the international chain of Stefanel and Interfashion), 
   --     Za Za (a local chain of lingerie stores)

-- Nike & Kix (a mono brand store for Nike products and multi brand store selling Converse, UGG, Onitsuka and New Balance), and

   --     Leather (a local store selling leather clothing and accessories)

These new names join international brands Bershka, Carrefour, H&M, McDonalds, Mango, Adidas and Zara who are already tenants.

The Grand Mall Varna now has in excess of 83% (41,176 sq.m) of its total area leased, up from 81.6% in March. The new tenants are due to commence trading during July and August 2012.

Orchid Hills Varna & Sofia

Since the beginning of the year the company signed 46 new pre-contracts for the sale of apartments in Orchid Hills Varna and 1 final contract in Orchid Hills Sofia. This leaves 75 apartments in Orchid Hills Varna and 11 units in Orchid Hills Sofia remaining for sale.

Orchid Gardens Varna

The Group is in a process to secure a further extension for its drawdown conditions for the loan facility and to agree the final terms with the financing bank in relation to this project in order to allow the completion of the project. A further announcement will be made once the agreement is binding.

Other projects

The Group continues to review options to realise value from certain of the Group's assets. A further announcement will be made once any binding commitments are entered into.

Trading update and financial position

As previously stated, the Board is cognisant of the large gap between the Group's market capitalisation and net asset value and remains committed to closing this gap. The Board will continue to keep shareholders updated with operational and financial milestones.

The Group is able to continue to operate within its current levels of funding in the immediate term. However, the quantum of free cash flow, which may be generated in the medium term from the sales of apartments and other assets, remains unclear. In addition, the margin of forecast available cash over requirements, as stated on 19 March 2012, remains small. Therefore, the Board is currently considering the best manner in which to address any potential future deficiency in the Group's available working capital. A further announcement will be made in due course.

2012 half year Interim Results

Orchid intends issuing its half year results for the six months ended 30 June 2012 on 28 September 2012.

Guy Meyohas, Chief Executive Officer of Orchid, said:

"The Grand Mall continues to fill up with a good mix of international brands and local stores. We continue to make progress selling apartments, despite economic conditions remaining very difficult.

"The Board also remains focused on resolving its financing needs, whilst aiming to complete projects under construction and seeking to sell assets."

Ends

 
 Contacts: 
 Orchid Developments                    www.orchid-dev.com 
  Guy Meyohas                              +35 92 981 9955 
 Shore Capital and Corporate Limited 
  Bidhi Bhoma / Toby Gibbs                +44 20 7408 4090 
 MHP Communications 
  Reg Hoare / Tim McCall / Vicky 
  Watkins                                 +44 20 3128 8100

Notes to Editors:

Orchid Developments Group Ltd (OCH.L), which listed on the AIM market in June 2005, was established with the aim of generating value for shareholders by investing in real estate and leisure business opportunities initially in Bulgaria.

The company is active in all principal sub-sectors of the Bulgarian real estate and leisure markets and currently holds three residential and six commercial property developments in Sofia and Varna. Its principal investment is Grand Mall Varna, Bulgaria's leading shopping mall.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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