According to the investment agreement signed on 23rd December 2010 between Reinhold Group BV, Rubicon Partners NFI S.A., Alterco S.A. and Reinhold Polska AB, the company will be recapitalized effectively by the contribution of a mixture of revenue generating and development assets. The increase in the capital of the company will be subject to approval by the existing shareholders on the AGM which will take place in May 2011. In addition to this a future fund raising is being planned to take place after the contribution of the assets from Alterco S.A. and Rubicon has been completed. In order to secure the groups cash flow and ability to finance its operations Alterco S.A. has agreed to contribute loans to the company until the above described plans has been carried out. Alterco S.A. had previously concluded an agreement with the Irish Investment Group (IGI) in December 2010, which means that a substantial part of the asset contribution, together with the know-how of the people employed by IGI will be used to drive the company
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Reinhold Polska AB (publ) | Gamla Brogatan 32, 2tr | 111 20 STOCKHOLM
Corporate identity number 556706-3713 | www.reinholdpolska.com
stockholm@reinholdpolska.com | tel (+46) 8 562 458 30 | fax (+46) 8 545 284 79
forward. This is the first step in the strategy of the company to transform itself into an investment holding company with development capabilities rather than just a development company. The company believes that this change of strategy will provide for a more stable growth path to recovery for the company. As a consequence of t5he above, the company has already established a pipeline of potential acquisitions ranging from established retail projects throughout Poland as well as existing income generating office buildings.
Operations
Operations according to the strategy have started on all projects, although the work has reached different levels. Please see table below for the status of each project.
Project Name
Location
Type
Status
Reinhold Przyjaźni
Wrocław
Residential/ commercial
Design phase
Reinhold Center
Katowice
Office
Phase 1 substantially leased
Reinhold Pulaskiego
Katowice
Residential
Building permit obtained
Reinhold Plaza
Kraków
Office / Retail
Building permit pending
Updated information about the projects can be found on the group’s website www.reinholdpolska.com.
Financial position - Group
Group sales during 2010 amounts to 31 292 781 (2 436 731) Euro and the net result is –16 959 840
(-2 847 354) Euro. Liquid assets amounts to 648 204 (4 038 221) Euro.
The equity ratio is 7,03% (24,04 %). The effective solidity is higher on group level since all loans are backed up with liquid funds in the parent company.
The main source for financing in the group has until early 2010 been the funds obtained in the share issue in 2006. These funds have stayed in the mother company. The liquid funds used to secure the external loans are accounted for as other short-term receivables in the Group accounts. However in the second half of 2010 and especially as a result of the termination of the Agreement by Union Investment, the company has become dependent on loans from third parties and Reinhold Group BV has during 2010 contributed with approx. 9,5 million PNL (EUR 2,4 million) in order to secure going concern principles.
The company is taking steps in 2011 to net this position off to reduce the above mentioned indebtness shown in the balance sheet. At the same time the company has also taken steps to reduce the debt facilities provided by other lending institutions through the planned sale of phase 1 of Reinhold Center.
Financial position - Parent company
Sales in the parent company amounts to 17 224 (84 799) Euro and net result for the year is 1 238 870 (435 369) Euro.