Grand City Properties S.A.,   / Key word(s): Bond

09.07.2013 08:30

Dissemination of a Corporate News, transmitted by DGAP - a company of EQS
Group AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Grand City Properties increases 6.25% corporate bond by up to EUR 100
million

  - Subscription is subject to the approval and notification of a
    prospectus by the Commission de Surveillance du Secteur Financier of
    the Grand Duchy of Luxembourg (CSSF) and is scheduled to commence on
    July 10, 2013

  - Private placement of the first EUR 100 million tranche in June 2013
    oversubscribed

  - Good investment opportunities for residential property portfolio 

Luxemburg / Berlin, July 9, 2013 - Grand City Properties S.A., a listed
company specialising in residential properties with high value creation
potential in urban growth regions, will increase the corporate bond issued
in June (Series B Bond; WKN A1HLGC) by up to EUR 100 million. Operating out
of Berlin, the company successfully placed the first EUR 100 million
tranche with European institutional investors in June. In view of the high
demand for the bond, which is rated BB- (stable outlook) by Standard &
Poors, management decided to increase the bond through a public offering in
Germany, Austria and Luxembourg. The secured bond (WKN A1HNBM) carries a
coupon of 6.25% p.a. and has a term of 7 years. It will mature on June 3,
2020, with interest paid semi-annually. The bond is scheduled for listing
in the Entry Standard for corporate bonds at the Frankfurt Stock Exchange.
A proposed public offer of the bond is subject to the approval of a
prospectus by CSSF, which is expected to take place today. Subject to such
approval the bond is scheduled to be available for subscription through
banks and online brokers at the Frankfurt Stock Exchange starting
approximately July 10 until approximately July 19 at a nominal amount of
EUR 1,000. Subscriptions from institutional investors should be placed with
Lead Manager and Bookrunner quirin bank AG.

The company portfolio comprises some 16,000 units including signed pipeline
deals - compared to 11,657 at year-end 2012 - with lettable space in excess
of 1.1 million square metres primarily in Berlin as well as in North
Rhine-Westphalia. Besides these core markets, the company is focusing
currently on cities such as Nuremberg, Dresden, Mannheim and Bremen.
Management sees excellent purchasing opportunities for residential
properties with high value creation potential and therefore intends to
invest the bulk of the proceeds from the bond issue in the portfolio
pipeline.

Says Christian Windfuhr, member of the Advisory Board of Grand City
Properties S.A.: 'We focus on portfolio sizes from 300 to 2,000 residential
units offering potential for optimisation in terms of occupancy and rent
levels and make a sustainable contribution to the Group's property
portfolio.'

Grand City Properties has increased revenues to over EUR 60 million in
2012. The property portfolio has a pro-forma net asset value (EPRA NAV) of
EUR 375 million (including the equity capital increase as of February 19,
2013). EBITDA amounted to EUR 122 million in 2012, when net profit was EUR
93 million. The company is solidly financed and has only recently increased
its equity capital by over EUR 90 million.

Key data of the bond

Subscription period:  Approximately July 10 - 19, 2013, subject to early
closing
Issue amount:    Up to EUR 100,000,000
WKN / ISIN:      A1HNBM / XS0951839991
Coupon:          6.25% 
Term:            7 years, due on June 3, 2020
Collateral (e.g.): 

- First-ranking pledges of all shares held by the issuer
in its subsidiary, GrandCity Property Ltd.

- Assignment of the repayment claims and the rights under the loans granted
by the issuer to GrandCity Property Ltd.

- First-ranking pledges of all bank accounts of the issuer and its
subsidiary, GrandCity Property Ltd.

Interest payment:  Semi-annually, first payment on December 3, 2013 
Issue price:   100%
Company/bond rating:  [BB-] stable outlook (Standard & Poors)

Denomination:    EUR 1,000
Security type:   Registered bond
Stock market segment:  Entry Standard, Frankfurt Stock Exchange

About Grand City Properties
Grand City Properties (ISIN: LU0775917882) focuses on investing in
residential property in Germany, especially in large urban high-density
areas. The Company follows primarily a buy and hold strategy. Efficient
management tools enable sustainable and targeted management of real estate.
The company valorize the objects through targeted modernization and runs an
intensive tenant management. The company's portfolio comprises some 16,000
residential units including signed pipeline deals with lettable space in
excess of 1.1 million square metres. In 2012, Grand City Properties has
posted an EBITDA of 122 million euros and a net profit of 93 million euros.
Since May 2012, Grand City Properties is listed on the Frankfurt Stock
Exchange in the stock market segment Entry Standard. Further information:
www.grandcityproperties.com

Press Contact:
Dariusch Manssuri
IR.on AG
T: +49 (0) 221 9140 975
E: [email protected]

Contact:
Kathrin Behlau
Grand City Properties S.A.
T: +49 (30) 887088183
E: [email protected]
www.grandcityproperties.com

Disclaimer
This press release does not constitute an offer to sell or an invitation to
make a bid for the purchase or subscription of bonds of Grand City
Properties S.A. The offer of bonds of Grand City Properties S.A. must be
made exclusively on the basis of the securities prospectus approved by the
Luxembourg Financial Supervisory Authority (CSSF), which has been published
at www.grandcityproperties.com/anleihe. This press release does not
constitute an offer to sell securities in the United States of America,
Canada, Australia, Japan or other jurisdictions in which an offer is
subject to statutory restrictions. The securities mentioned in this press
release may not be offered or sold in the United States or to US persons
(as defined in Regulation S under the Securities Act of 1933 as amended
from time to time (the 'Securities Act')) unless they have previously been
registered or, if they have not previously been registered, only based on
an exceptional regulation. Subject to certain exceptions pursuant to the
Securities Act, the securities mentioned in this press release may not be
offered or sold in Australia, Canada or Japan or to, or for the account of,
Australian, Canadian or Japanese residents. The offer or the sale of the
securities mentioned in this press release will not be registered in
Canada, Australia and Japan in accordance with the respective legal
provisions in these countries. It is not intended to make a public offer of
securities in the United States.


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