DISCLAIMER: THIS DOCUMENT CONSTITUES THE TRANSLATION FROM THE POLISH PROSPECTUS OF ATLAS ESTATES LIMITED APPROVED BY KOMISJA NADZORU FINANSOWEGO (THE POLISH FINANCIAL SUPERVISION AUTHORITY) ON 31 JANUARY 2008 ATLAS ESTATES LIMITED (a closed-ended investment company incorporated in Guernsey and registered with number 44284) This prospectus (the “Prospectus”) has been prepared in connection with the admission to trading on a regulated market of ordinary shares each with a nominal value of EUR 0.01 (the “Shares”) in ATLAS ESTATES LIMITED, a company incorporated with limited liability in Guernsey as a closed-ended investment company (the “Company” and, together with its subsidiaries, the “Group” or the “Atlas Group”). The Shares were admitted to trading on the AIM, i.e. the un-regulated market of the London Stock Exchange plc, on March 2006. The Shares are not admitted to trading on any regulated market. Based on this Prospectus, an application is made by the Company for the admission to trading on the Warsaw Stock Exchange (the “WSE”) of all existing Shares that are or will be dematerialized within the meaning of the Act on Trading in Financial Instruments (the “Admission Shares”). Trading in the Shares on the WSE is expected to commence on or about 12 February 2008. This Prospectus does not constitute an offer to sell, or the solicitation of an offer to buy, the Shares. Neither the Prospectus nor the Shares have been approved in or notified to any regulatory authority in any jurisdiction other than in the Republic of Poland. Neither the U.S. Securities and Exchange Commission nor any state securities and exchange commission in the United States nor any other US securities authority has approved or refused to approve the introduction of the Shares to trading on the WSE, nor has any such commission or authority confirmed the compliance or completeness of this document. For a description of selected risk factors to be considered in connection with any contemplated investment in the Shares please see the Chapter “Risk Factors”. The Admission Shares will be registered in Poland at the depository maintained by the National Depository for Securities (Krajowy Depozyt Papierów Wartościowych S.A.) (the “KDPW”) through the clearing system of Euroclear Bank (“Euroclear”) which acts as an intermediary between CRESTCo. Limited (“CrestCo”), and the system of the KDPW. IMPORTANT NOTICE TO HOLDERS OF SHARES IN CERTIFICATED FORM Holders of the Shares in certificated form (i.e. document form), for example persons who acquired Shares in a private transaction, should be aware that due to certain restrictions under applicable provisions of Polish law, admission to trading on the WSE will be sought only with respect to those Shares which exist in uncertificated (book-entry) form within the meaning of the Act on Trading in Financial Instruments. Consequently, the holders of such certificated Shares will not be able to sell their Shares on the WSE. Holders of Shares in certificated form should obtain legal advice regarding the resale of such Shares in accordance with applicable laws. In view of the fact that the number of the Shares to be admitted to trading on the WSE will be lower than the total number of the Shares, the Company shall, on a regular basis, monitor the number of the new uncertificated Shares recorded in the CREST and shall, as and when needed, submit appropriate application requesting the registration of such additional Shares at the KDPW and for the admission and introduction thereof to trading on the WSE, so as to ensure equal treatment of the holders of uncertificated Shares with respect to their ability to transfer the Shares between the systems of the KDPW and CREST and the ability to trade such Shares on the WSE and the AIM. Capitalised terms used in this Prospectus have the meaning ascribed to them in the Section “Definitions” or elsewhere in this Prospectus. ATLAS ESTATES LIMITED PROSPECTUS TABLE OF CONTENTS SUMMARY ........................................................................................................................................................7 Overview.............................................................................................................................................................7 Group History....................................................................................................................................................10 Strategy .............................................................................................................................................................11 Competitive strengths........................................................................................................................................12 Attractive pipeline of real estate projects..........................................................................................................13 Summary of risk factors ....................................................................................................................................13 Summary of the selected financial data.............................................................................................................15 Summary of information on the Shares and the Admission Shares ..................................................................16 RISK FACTORS ...............................................................................................................................................17 Risks relating to the Group’s business ..............................................................................................................17 Risk relating to the real estate sector.................................................................................................................21 Risks relating to property development ............................................................................................................23 Risk associated with the real properties to let ...................................................................................................26 Risks related to the hotel operations of the Group ............................................................................................27 Risks related to the geographic markets in which the Group operates..............................................................27 Risks relating to the admission of the Admission Shares to trading on the WSE.............................................29 INTRODUCTORY INFORMATION ...............................................................................................................33 FORWARD-LOOKING STATEMENTS..........................................................................................................33 INDUSTRY AND MARKET INFORMATION...............................................................................................34 MACROECONOMIC AND STATISTICAL INFORMATION .......................................................................34 PRESENTATION OF FINANCIAL AND OTHER INFORMATION.............................................................34 DOCUMENTS ON DISPLAY..........................................................................................................................35 AUDITORS.......................................................................................................................................................36 LISTING OF THE SHARES ............................................................................................................................37 CAPITALIZATION AND INDEBTEDNESS..................................................................................................38 Working Capital Satement ................................................................................................................................40 Financial Structure and Funding Needs ............................................................................................................40 Information concerning any limitations on the use of capital resources ...........................................................41 DIVIDENDS AND DIVIDEND POLICY........................................................................................................42 General Information ..........................................................................................................................................42 Interim Dividends..............................................................................................................................................42 Dividends Paid for the Period Covered by Historical Financial Data...............................................................42 Dividend Payment Policy..................................................................................................................................42 EXCHANGE RATES........................................................................................................................................43 PLN/EUR ..........................................................................................................................................................43 GBP/EUR..........................................................................................................................................................43 SKK/EUR..........................................................................................................................................................43