Grand City Properties S.A., / Key word(s): Issue of Debt
Grand City Properties: EUR 100 million bond successfully placed
Luxemburg / Berlin, July 19, 2013 - Grand City Properties S.A., a specialist for residential properties with high value creation potential in urban growth regions, will complete, as planned, the step-up of its corporate bond (WKN A1HNBM) in an amount of EUR 100 million at 2 pm today. The issue is already over-subscribed. Together with the successful first tranche of the bond placed in June 2013 the company has raised a total of EUR 200 million. The secured corporate bond carries a coupon of 6.25% p.a. and has a term of 7 years with interest paid semi-annually. Trading on the Frankfurt Stock Exchange (Entry Standard) is intended to commence on July 24, 2013.
Christian Windfuhr, member of the Advisory Board of Grand City Properties S.A., commented: 'We are grateful for the confidence placed in us and will now move forward with working through our well-filled pipeline.' The proceeds from the issue will essentially be used to expand the existing Grand City Properties portfolio. Including the most recently signed agreements, the portfolio currently comprises some 16,000 units - 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 residential properties in cities such as Nuremberg, Dresden, Mannheim and Bremen. Management sees excellent purchasing opportunities for residential properties with high value creation potential.
The issue was supported by quirin bank AG acting as lead manager and bookrunner.
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