Amsterdam, October 1, 2007 – International investment company Kardan N.V. (Kardan) announces that through its real estate subsidiary, Globe Trade Centre S.A. (GTC SA), the final agreement has been signed for the sale of the subsidiary owning America House Building, a class-A office building in Bucharest, Romania, valued at EUR 120 million. As a result of this transaction, Kardan will recognize a gain of approximately EUR 7 million.

America House Building is a class-A office building in Bucharest, Romania and has 27,000 sqm of net rentable space. The transaction values America House at EUR 120 million, which implies a yield of 5.55%. The transaction is setting a new benchmark for the valuation of commercial property in Romania, indicating that strong yield compression is continuing.

The buyer - PBW II Real Estate Fund S.A. is a real estate fund managed by IXIS AEW Europe (IAE) - a leading European real estate manager. IAE is a subsidiary of IXIS Asset Management Group, which together with North America based AEW Capital Management is responsible for approximately EUR 30 billion of gross assets under management.

GTC SA develops real estate projects in Poland, Hungary, the Czech Republic, Romania, Serbia, Croatia, Slovakia, Bulgaria and Ukraine. The sale of America House fits GTC SA’s strategy to further diversify its property portfolio both in terms of sector and geographical spread. Today the GTC SA portfolio of projects under development in Romania comprises approximately 500,000 sqm of net commercial and residential space (GTC SA share).

GTC SA is listed on the Warsaw Stock Exchange and is included in the WIG20, MSCI, GPR 250 and CAIB REX indices. GTC Real Estate N.V. (GTC RE), the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA. GTC RE’s shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan holds (directly and indirectly) a 61.3% stake in GTC RE.

GTC RE is continuously looking for investment opportunities in Central Eastern Europe through GTC SA., and in China through GTC Real Estate China Ltd. GTC RE has recently been receiving offers for investments and joint ventures in real estate in India, and is currently reviewing these. 

About Kardan

Kardan is an international investment company with a focus on three sectors: Real Estate, Financial Services and Infrastructure. Kardan is primarily active in Central and Eastern Europe, where it conducts most of its activities. Kardan holds controlling interests in its main businesses and is actively involved in the definition and implementation of their strategy. Total assets per December 31, 2006 amounted to EUR 2.2 billion, with revenues of EUR 588 million. The number of employees engaged by the group is approximately 7,980 as of December 31, 2006. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Citigate First Financial               phone +31 (0)20 575 40 10

Floor van Maaren                      mobile +31(0)6 29 59 77 46

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