Polski Holding Nieruchomości S.A.

M&A Activity • Oct 14, 2016

Concluding an agreement regarding the delivery of the Molo Rybackieproject in Gdynia (Yacht Park)

Current report No. 25/2016 of October 14, 2016

Legal basis: Article 17.1 of MAR - confidential information

In reference to Current report No. 75/2014 of October 30, 2016, theManagement Board of Polski Holding Nieruchomości S.A. (the "Company" or"Issuer") hereby informs that on October 14, 2016, one of the Issuer'ssubsidiaries - Dalmor S.A. based in Gdynia - concluded an agreement withmLocum S.A. based in Łódź on the sale of shares in the companyApartamenty Molo Rybackie Sp. z o.o. based in Gdynia which isimplementing the Molo Rybackie (Yacht Park) project at ul. ArkadiuszaRybickiego in Gdynia.

The subject matter of the agreement is the sale by mLocum S.A. andpurchase by Dalmor S.A. of 2,000 shares in Apartamenty Molo Rybackie Sp.z o.o. for a total net price of PLN 1,000,000.00. The agreement wasconcluded for the purpose of exercising a call-back option by DalmorS.A. in accordance with the Joint Venture Agreement of October 30, 2014.After the transaction mentioned above, Dalmor S.A. holds 100% of sharesin Apartamenty Molo Rybackie Sp. z o.o.

Polski Holding Nieruchomości S.A. Group intends to continue the YachtPark project on its own. The project will consist of six 5-storeymulti-family residential buildings which will occupy an area of ca.6,300 sq.m. The complex will have a total usable area of 12,000 sq.m.,including 135 apartments with a total area of ca. 9,600 sq.m. Premiseslocated on the ground floor will have a retail and service function. Theproject will also include constructing a marina for 120 units.

Due to the scale of the project, the Company's Management Boardconsidered this information as important.

Legal basis: Article 17.1 of MAR - confidential information