Construction, Estonia, Investments, Real Estate

The business area of the new subsidiary of Tondi Kvartal is real-estate development and the planned business activity is the development of the first phase of the second stage of Tondi residential area located in Tallinn.

The transaction is not considered to be a transaction with connected persons within the meaning of the stock-exchange requirements and members of the Issuer’s supervisory board and management board are otherwise personally not interested in the transaction. The establishment of the subsidiary does not have an effect of the economic activity of the issuer.

The share capital of Marsi Elu is 10,000 euros, which upon the establishment of the company belongs 100% to Tondi Kvartal. The members of the management board of the new company are the Chairman of the Management Board of Pro Kapital Grupp Mr. Paolo Vittorio Michelozzi and Head of Legal of the group Mr. Ervin Nurmela.

In the near future it is planned to sell part of the business of Tondi Kvartal needed for executing the project to the new subsidiary. The part of the business to be transferred includes part of the land plot needed for the development of the project, the pre-sale agreements of apartments already signed and other set of contracts needed for the development of the project.

In order to start with the construction works the negotiations are held with the main contractor, the bank and the possible co-investor. It is planned to sell a minority stake in the new subsidiary to co-investor.

Tondi Kvartal is a company established on October 7, 1997, which belongs 100% to Pro Kapital Eesti. Pro Kapital Eesti is 100 percent subsidiary of Pro Kapital Grupp. Tondi Kvartal is the owner of the land plots needed for the development of the Tondi residential area.