Amsterdam, December 3, 2014 - Kardan N.V. (‘Kardan’ or ‘the Company’), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that its indirect wholly owned subsidiary Kardan Land China Ltd. (‘KLC’) has signed a share purchase agreement (‘the Agreement’) to sell its 50% shares in Kardan Land
Chengdu (HK) Ltd. (‘Kardan Land Chengdu’) (‘the Transaction’) to its 50% co-shareholder,
BR Spicy (B.V.I) Ltd. (‘the Purchaser’), for a consideration of approximately
RMB 555 million (approximately EUR 72.6 million) (‘the Consideration’).

The Consideration reflects a value of the shopping mall Galleria Chengdu of RMB 1,254 million (approximately EUR 164 million), off-set by a bank loan and other assets and liabilities of Kardan Land Chengdu as of October 30, 2014. At closing, the Purchaser will pay the Consideration amount, which will be adjusted after closing according to changes in assets and liabilities of Kardan Land Chengdu from November 1, 2014, until the closing date and settled accordingly.
It was further agreed that KLC will continue to manage Galleria Chengdu.

The closing of the Transaction is subject to certain conditions precedent, of which the main condition is to receive a consent letter from the China Construction Bank (‘CCB’) regarding the change of ownership and early repayment (after closing) of Kardan Land Chengdu’s loan from CCB of approximately EUR 21 million. In the event that closing fails to occur within an agreed upon time frame on account of material breach of the Agreement by the Purchaser, a break-up fee of USD 8 million to be paid to KLC will be applicable, and if closing fails to occur on account of material breach of the Agreement by KLC the Purchaser shall have all rights and remedies available to it under applicable Law, including the right to enforce the Agreement. Closing is expected to take place before the end of 2014. The net proceeds of the Transaction, after deduction of costs and taxes, are expected to be approximately EUR 65 million. Following the closing, the Company is expected to receive at least EUR 30 million of the net proceeds which will be used to repay a bank loan.

The Transaction is expected to result in a net gain to Kardan of EUR 13 million, after estimated tax expenses. Further accounting implications of the Transaction, if any, are still under consideration. It is noted that all EUR amounts are at based on current exchange rates and may differ at closing date.

"Galleria Chengdu, which was opened to the public in November 2010, was a land mark success for Kardan in China. The mallcomprises approximately 54,000 sqm of gross rentable retail space, is fully occupied and includes among its tenants well known international retailers including Zara, Mango, H&M, Sephora, and Uniqlo. The success of Galleria Chengdu has been underpinned by the awards it has won since its opening. In August 2011, we already sold 50% of the Galleria. We are happy that we remain as asset manager of the mall and as such can continue our successful cooperation with the Purchaser. Kardan Land China is now focusing on our flagship project Europark Dalian. We are expecting the new mall to be opened in the first half of 2015 and to be at least as successful as our Chengdu mall” states Alon Shlank, Chairman of KLC.

"The decision to sell our stake in Galleria Chengdu is predominantly due to the liquidity needs of Kardan in relation to the upcoming repayment of its bank loan. As stated before, we continue to push for transactions that will allow Kardan to fully repay its debts" said Shouky Oren, CEO of Kardan NV.