TIDMOCH

RNS Number : 9495S

Orchid Developments Group Ltd

06 December 2012

6 December 2012

Orchid Developments Group Ltd.

("Orchid" or the "Group")

Formal opening of Orchid Gardens Varna following receipt of permits

Orchid (AIM: OCH), the Bulgarian focused property developer and investor, is pleased to announce the formal opening of Orchid Gardens Varna, its multi-use retail, offices and residential complex, having received its final permits today. This follows frustrating construction delays due to issues with the contractor.

Orchid Gardens Varna is one of the largest multi-use complexes ever built in Varna; the project has 42,000 sq.m of built area with 16 floors above ground and 3 floors below ground. It combines 2 levels of retail space (7,700 sqm), 4 levels of office space with 88 units (9,500 sqm), 10 levels of luxury apartments with 107 apartments (12,100 sqm) (of which 10 have already been sold) and 13,270 sqm of underground parking.

The project has panoramic views over the city of Varna and is located in close proximity to the popular Sunny Varna Beach strip and the City Centre.

Orchid through its local subsidiary, will manage the day-to-day operations of the complex.

Orchid Gardens is held in a ring fenced subsidiary of the Group. The development was financed by committed facilities at the project level, which were renegotiated earlier in 2012, rescheduling the repayment of the credit facility. Therefore, the subsidiary's cash flow will not have an effect on the cash available to the Group in the short term.

Guy Meyohas, Joint Chief Executive of the Company said:

"The opening of Orchid Gardens Varna is a significant milestone for the Company and we are excited by the prospects for this prestigious development. We have recently secured Carrefour as the anchor retail tenant and are continuing to market the retail, office and apartments in the complex with the intention of building up this project's cash flow and enhancing and realising its value."

Ends

 
 Contacts: 
 Orchid Developments            www.orchid-dev.com 
  Guy Meyohas                      +41 798 200 200 
 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, one of Bulgaria's leading shopping malls.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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