Establishing a mortgage on assets of significant value

Legal basis

Art. 56.1.2 of the Act on Public Offering - current and periodic information

The Management Board of Rank Progress S.A. (the 'Issuer') reports that on 11 December 2015 it received a notification of the decision taken by the District Court in Chojnice V Commercial Division - Land and Mortgage Registers (the 'Court') on making on 27 November 2015 the entry of a joint mortgage with the maximum security value of up to EUR 31,000,000.00 (which is equivalent to PLN 132,345,200.00 according to the average exchange rate of NBP (the National Bank of Poland) effective on 27 November 2015) established on assets owned by the Issuer's subsidiary undertaking, Progress XXIII Sp. z o.o. having its registered seat in Warsaw. The mortgage was established to secure the repayment of liabilities to Bank BPH S.A. having its registered seat in Gdańsk (the 'Bank'), arising from the loan agreement concluded between the Bank and Progress XXIII Sp. z o.o., of which the Issuer informed in its Current Report No. 50/2015 of 25 November 2015. Pursuant to the decision of the Court, the mortgage was established on the following real properties:

1) real property in the form of a parcel of land located in Chojnice, having a total area of 0,5305 ha, for which the Court maintains Land and Mortgage Register No. KW SL1C/00046019/4.

2) real property in the form of a parcel of land located in Chojnice, having a total area of 4,1297 ha, for which the Court maintains Land and Mortgage Register No. KW SL1C/00046020/4.

3) real property in the form of a parcel of land located in Chojnice, having a total area of 0,5595 ha, for which the Court maintains Land and Mortgage Register No. KW SL1C/00046021/1.

4) real property in the form of a parcel of land located in Chojnice, having a total area of 1,9664 ha, for which the Court maintains Land and Mortgage Register No. KW SL1C/00046022/8.

5) real property in the form of a parcel of land located in Chojnice, having a total area of 3,0024 ha, for which the Court maintains Land and Mortgage Register No. KW SL1C/00046038/3.

The book value of the said properties, belonging to the 'Brama Pomorza' Shopping Centre in Chojnice, totaled PLN 131,347,872.34 as at the date of establishing the security.

The assets on which the mortgage was created are considered significant, as their value exceeds 10% of the Issuer's equity.

According to the Issuer's best knowledge there are no links between the Issuer and its management or supervisory staff and the Bank in favour of which the mortgages were established and its management staff.

Legal basis

Art. 5.1.1 of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information published by issuers of securities and conditions for recognising as equivalent the information required under the provisions of the law of a non-member state.

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