Fadesa Polnord Polska sp. z o.o. (FPP) Update

Questions regarding MARTINSA-FADESA S.A.

1. What does the opening of the liquidation process of MARTINSA-FADESA S.A. mean?

   On 6 March 2015, Court in La Coruña (Spain), Commercial Division No. 1, opened the liquidation process of MARTINSA-FADESA S.A. The company was placed in liquidation as it had been unable to repay debt to its creditors within the timeframe established under an agreement concluded with its creditors back in March 2011.

   Three members of the bankruptcy Management Board, who already participated in the arrangement proceedings with the creditors from 2008 to March 2011, have been appointed liquidators of MARTINSA-FADESA S.A. They are responsible for managing and disposing of the company's assets. It is the liquidators' task to prepare a plan of selling off the assets of MARTINSA-FADESA S.A., to be approved by the judge overseeing the company's liquidation process.

   On 29 September 2015, the plan of selling off the assets of MARTINSA-FADESA S.A. has been approved by the judge overseeing the company's liquidation process.

   The statutory liquidation period lasts one year. Since MARTINSA-FADESA S.A. is one of the largest companies in the real property sector in Spain, the liquidation period is extended, at least, till 31 December 2017. This date, 31 December 2017, is referential and further extension of the liquidation period is likely.

2. Will the liquidation of MARTINSA-FADESA S.A. affect its subsidiaries outside Spain?The liquidation will not affect the subsidiaries of MARTINSA-FADESA S.A. organised in other countries than Spain. Each of the subsidiaries is a separate legal entity. The international subsidiaries are stand-alone entities, independent of MARTINSA-FADESA S.A., engaging in their own business operations that will not be impacted in any way by the liquidation of MARTINSA-FADESA S.A

Questions regarding FADESA POLNORD POLSKA SP. Z O.O.

1. What is the interest that MARTINSA-FADESA SA holds in FPP?

   MARTINSA-FADESA SA holds 51% of shares in FPP.

2. Will the liquidation of MARTINSA-FADESA S.A. affect the management and business operations of FPP?

   The liquidation of MARTINSA-FADESA S.A. does not affect FPP. FPP continues to work on its construction projects and manage its resources in the same way as it has done so far. When MARTINSA-FADESA S.A. was subject to the arrangement proceedings from July 2008 to March 2011, at FPP it was also business as usual. Since July 2008, FPP sold over 2200 apartments in Poland, out of which 700 in the project launched in the spring of 2010 in Wrocław. During that time, FPP also acquired new land for residential development in Wrocław. The current projects underway in Warsaw and Wrocław, both those under construction and at the preliminary development stage, are all on schedule.

   FPP is among the top performers in the property development sector in terms of financial liquidity in Poland, boasting a very low level of bank debt. For detailed information on FPP's financial standing and the company's financial statements visit our website at /en/financial-data.html

   Financing

1. The construction of the OSTOJA-WILANÓW estate in Warsaw is financed by PEKAO S.A.

2. The construction of the OSIEDLA-MODERNO estate in Wrocław is financed by GETIN NOBLE BANK S.A.

3. The construction of the APARTAMENTY-INNOVA estate in Wrocław is financed by GETIN NOBLE BANK S.A.

   All projects are subject by the provisions of the Act on Protection of Rights of Purchasers of Apartments and Single-Family Houses of 16 September 2011. In the OSIEDLE-MODERNO and the APARTAMENTY INNOVA projects in Wroclaw, all the advance payments transferred by customers towards their future dwellings are deposited in escrow accounts (rachunki powiernicze in Polish). The OSTOJA-WILANÓW project in Warsaw is subject by the provisions of the financing agreement with bank PEKAO S.A. This means that all the advance payments transferred by customers towards their future dwellings are deposited in escrow accounts (rachunki zastrzeżone in Polish). The provisions are effective since the beginning of the construction of OSTOJA-WILANÓW.

About Fadesa Polnord Polska

FPP was set up in 2005; its shareholders comprise Spanish MARTINSA-FADESA S.A. (51% interest) and Polish POLNORD S.A. (49% interest). Currently FPP has under construction the Ostoja-Wilanów (www.ostoja-wilanow.com) estate in Warsaw and Osiedle-Moderno (www.osiedlemoderno.pl) and Apartamenty-Innova (www.osiedle-innova.com) estates in Wrocław. FPP has built as well the Osiedle-Innova (www.osiedle-innova.com) estate in Wroclaw. In addition, FPP holds land in Poland that is sufficient to construct another 700 apartments. From its inception to 30 Septembrer 2015, FPP sold 2,478 apartments, of which 700 in Wrocław, and handed over keys to 2,154 apartments. In 2014, FPP sold 259 apartments, handed over keys to 408 apartments, and invoiced PLN 174 million

Warsaw, date: 9 March 2015 (updated on 5 October 2015)