Dragon-Ukrainian Properties & Development plc is an IOM registered company formed in February 2007 to invest in the development of new commercial properties and redevelopment of existing properties in Ukraine. Ukrainian commercial property market and, in particular, the development of new and re-development of existing properties in the retail, office and warehousing sectors, presents a solid investment opportunity due to the following:

• high rental yields are available in the Ukrainian property market relative to other European markets;
• in the short and medium term, demand for high-quality retail, office and warehouse space should continue to exceed supply as the country's economy develops, which, coupled with limited availability of high quality property stock, is expected to exert strong upward pressure on rent levels;
• and over the foreseeable future, the Ukrainian real estate market is likely to experience further yield compression, mirroring the trend in other central and eastern European countries.

The Company will utilise the property investment and development expertise of Dragon Capital Partners Limited ("DCP" or "Manager") and, where a joint venture agreement is appropriate, local Ukrainian partners.

DCP has been appointed to provide advisory, investment management and monitoring services to the Company in respect of property development opportunities in Ukraine. DCP is an affiliate of Dragon Capital, a leading Ukrainian financial institution specialising in the provision of investment banking, securities trading, asset management and private equity services. Dragon Capital has received the "Best Equities House in Ukraine" award in 2002, 2004, 2005 and 2006 by "Euromoney", a leading financial journal. The senior management of DCP possess expertise in the Ukrainian investment and real estate markets. In addition, DCP has access to the additional resources of Dragon Development Limited, a Ukrainian company specialising in the provision of real estate development services with particular expertise in the retail sector.