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Newsletter July 2012


World’s 3rd Largest Offshore Windfarm

Greece will soon be home to the world’s 3rd largest offshore windfarm, following approval by the Regulatory Authority for Energy.

Green Light to RF Energy for the World’s 3rd Largest Offshore Windfarm
Greece’s Regulatory Authority for Energy (RAE) approved that City Electric Company, a subsidiary of RF Energy, builds the third largest offshore wind farm in the world. The windfarm, to generate 498,15 MW of power, is to comprise 81wind turbines.

This project, northeast of island of Lemnos, is estimated to be the third largest offshore windfarm in the world, following the British London Array (630 MW) and Greater Gabbard (504 MW).  The fourth and fifth positions belong to Germany’s Trianel Borkum West II (400 MW)and Bard Offshore I (400 MW) and sixth is the Danish Anholt (400 MW) project.

Russian Purchase of Luxury Hotel
Cronwell Hotels & Resorts, the 19th largest Russian hotel chain, has bought one of Chalkidiki’s oldest hotels, and is transforming it into a 5 star luxury hotel. The hotel will be renamed Cronwell Resort Sermilia and will have more that 130 rooms.

Minoan Enters into Agreement with the Candia Investment Corporation
Minoan, the AIM listed travel and leisure company, announced that it has entered into an agreement with the Candia Investment Corporation to create a financial joint venture regarding Minoan’s project in North Eastern Crete. The key terms of the Agreement are:
1. In exchange for an investment of £2 million in cash, the Partner will earn a 10% economic interest in the Project. The funds will be made available in tranches commencing in August 2012 with the final payment becoming due in September 2013;
2. The Partner will have the right to purchase a further 25% share in the Project, for an additional £12.5 million, during an agreed period after receipt of Environmental Approval for the Project;
3. The Partner will be also granted an option to subscribe for up to 4 million new Ordinary Shares in Minoan at an exercise price of 8p per share. Subject to certain conditions the option is exercisable between 1 February 2013 and 30 September 2015;
4. The Agreement contains clauses which may lead to a limited adjustment in both Parties’ interests in the Project; and
5. The Partner and Minoan have agreed to establish a special purpose vehicle (“SPV”) to examine the possibility of creating a revenue producing business through the purchase and/or operation of leisure-related assets in Greece. The shareholding of the SPV will be Minoan 51%, the Partner 49%.

Christopher Egleton, Chairman of Minoan, said:
“We are delighted to announce this major strategic partnership today. Shareholders will be aware of the Company’s stated intention to proceed with its Project in Crete by means of entering into desirable joint venture arrangements. As well as establishing a value of £20 million for the Project as it stands today, this agreement releases resources for the expansion of the Group’s Travel and Leisure Division. Following the result of the Greek election I believe that tourism will remain central to Greece’s recovery strategy and we look forward to updating the market on progress in the coming weeks”.

Source: Minoan Group