Grand City Properties S.A., / Key word(s): Bond 09.07.2013 15:22 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. --------------------------------------------------------------------------- Grand City Properties: Securities prospectus for bond issue approved; subscription period starting tomorrow - Issue amount of up to EUR 100 million - Coupon of 6.25% p.a., term of 7 years - Subscription period from July 10 to probably July 19, 2013 Luxemburg / Berlin, July 9, 2013 - The securities prospectus for the bond issue of Grand City Properties S.A., a specialist for residential properties with high value creation potential in urban growth regions, has today been approved by the Luxembourg Financial Supervisory Authority (CSSF - Commission de Surveillance du Secteur Financier). Notification to the German Financial Supervisory Authority (BaFin) and the Austrian Financial Supervisory Authority (FMA) has also been applied for today. The securities prospectus is available for free downloading from the websites of Grand City Properties S.A. (www.grandcityproperties.com/bond) and the Luxembourg Stock Exchange (www.bourse.lu) as well as in printed form at the headquarters of Grand City Properties S.A. The secured corporate 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. Rated BB- (stable outlook) by Standard & Poors, the bond is scheduled for listing in the Entry Standard for corporate bonds of the Frankfurt Stock Exchange. It will be available for subscription through banks and online brokers at the Frankfurt Stock Exchange starting July 10 until probably 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 intends to invest the bulk of the proceeds from the bond issue in the acquisition of new residential properties. Key data of the bond Subscription period: 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, on December 3 and June 3 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 (Entry Standard; 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. 09.07.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------