Amsterdam, 26 November 2007 - International investment company Kardan N.V. (Kardan) announces that its subsidiary GTC Real Estate N.V. (GTC RE) has signed a term sheet ("TS") with D.S. Kulkarni Developers Ltd. (DSKDL) for the development of a phased commercial and residential project in Pune, India. The project comprises 1.5 to 2 million sq.m. of building rights on a land plot of approximately 1 million sq.m.
 
The project is located in the city of Pune, 150 kilometers east of Mumbai. Pune has a population of approximately 5 million people, is the 6th largest economic center in India and is considered one of the fastest growing cities in the world. It is known as the “Oxford of the East� because it has many reputable universities and other educational institutions. The site is located in the eastern suburbs of Pune, at the intersection of a main road into Pune and the planned ring road.
 
According to the TS, the parties will establish a 50%-50% joint venture (JV). DSKDL will transfer to the JV a land plot of approximately 1 million sq.m. In consideration for its share in the JV, GTC RE will transfer, in installments, the current Indian Rupee equivalent of USD 95 million (EUR 64 million).  The first installment of the current Indian Rupee equivalent of USD 55 million (EUR 37 million) will be paid upon fulfillment of certain conditions precedent, including the receipt of necessary permits. The balance of the consideration will be paid in two further equal installments based on certain milestones as agreed between the parties.
 
On the site, the parties plan to develop a total of 1.5 to 2 million sq.m. of commercial (approximately 2/3) and residential (approximately 1/3) area. The closing of the transaction is subject to certain conditions precedent, including the approvals of the boards of directors of both parties, due diligence and the signing of a detailed agreement. The closing of the transaction is further subject to the site obtaining the status of Special Economic
Zone. This status will provide significant tax benefits.

DSKDL is a public company listed on the Bombay Stock Exchange and the National Stock Exchange of India Ltd. since 1993. DSKDL is active in real estate in India since 1981 and has developed over 1 million sq.m of space. DSKDL is the real estate arm of the DSK Group, which is also active in the automotive, IT, Education and Pharmaceutical sectors in India.
 
GTC RE, the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC investments B.V., and in China through GTC Real Estate China Ltd. GTC RE’S shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 65.7% stake in GTC RE.

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