Grand City Properties S.A., / Key word(s): Miscellaneous
- EUR 90m equity capital increase from private placement andconversion of convertible bonds
- Focus of investments on residential properties with high value creation potential in densely populated regions
- In addition to Berlin and NRW, GCP develops new regions: in Nuremberg, Dresden, Leipzig, Mannheim, Bremen
- Current portfolio pipeline comprises some 5,000 residential units
Luxembourg / Berlin, 1 July 2013 - Grand City Properties S.A., a specialist for residential properties with high value creation potential in urban growth regions, intends to expand its German property portfolio considerably and to acquire residential units worth over EUR 200 million. Having entered the German market in 2004, the company currently manages some 16,200 residential units with a lettable space of more than 1.2 million square metres primarily in Berlin as well as in high density areas in North Rhine-Westphalia. Besides these core markets, the company is focusing primarily on cities such as Nuremberg, Dresden, Leipzig, Mannheim and Bremen. The portfolio pipeline currently comprises some 5,000 residential units.
Grand City has over EUR 200 million to finance the planned investments. Since the issuance of a convertible bond, the company raised over EUR 90 million in fresh equity capital through a private placement of a capital increase against cash contribution and by bond conversions, thus reducing its liabilities significantly. In addition, at the beginning of June, Grand City placed a 6.25% corporate bond issuance with a volume of EUR 100 million (Series B Bond; WKN A1HLGC) in a private placement with European institutional investors. Furthermore, cash reserves and bank lines for new projects are available to the company.
Christian Windfuhr, member of the Advisory Board of Grand City Properties S.A.: 'We aim to expand our portfolio to over 20,000 residential units in the next 6 to 9 months. We continue to see excellent buying opportunities in the German residential property market, especially in our market segment of intrinsically prime properties with high value creation potential.'
Operating out of Berlin the property portfolio manager primarily focuses on portfolio sizes from 300 to 2,000 residential units which offer potential for optimisation in terms of vacancies and rent levels and make a sustainable contribution to the Group's property portfolio. The Group's proforma net asset value (EPRA NAV) amounted to approx. EUR 340 million (including the February 2013 equity placement and bond conversions till 30.6.13). Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 122 million in 2012, when net profit reached EUR 93 million.
'We have grown strongly over the past four years and have achieved high value gains for our portfolio thanks to our strong management team, customised IT platform, efficient marketing and the high quality of our services. We will expand our portfolio building on a healthy mix of equity capital, long term bank loans and bonds,' Christian Windfuhr.
About Grand City Properties
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