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

03.12.2013 08:33

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 S.A.
Luxembourg, December 3, 2013

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR ANY JURISDICTION WHERE
TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

Grand City Properties S.A. - Announcement of successful placement of new
shares from capital increase

  - Offer price per share EUR 6.50

  - Company will receive gross proceeds of EUR 175.5 million 

  - Offer oversubscribed

Following an accelerated book building process on 2 and 3 December 2013,
Grand City Properties S.A. ('Company') fixed the final volume of the
capital increase. The Company's share capital will be increased from EUR
8,842,500 by EUR 2,700,000 to EUR 11,542,500. 27,000,000 new ordinary
shares with a par-value of EUR 0.10 each ('New Shares') will be issued. The
offer price per New Share was fixed at EUR 6.50. The transaction will
increase the Company's free float from currently 50.3 % to 61.98 %. The New
Shares were successfully placed by Berenberg, acting as Sole Global
Coordinator and, together with J.P Morgan, as Joint Bookrunner, with
institutional investors by way of private placement in selected countries
in reliance on Regulation S of the US Securities Act of 1933, as amended,
which was over-subscribed.

Grand City Properties S.A. will receive gross proceeds of EUR 175.5
million. The net proceeds will be used to fund the Company's acquisitions
pipeline. The Company is in advanced process of signing several
acquisitions of various under-performing property portfolios with a total
volume of more than EUR 250 million. The portfolios under consideration are
consistent with the Company's business strategy, and the geographic
distribution is with primary focus on North Rhine Westphalia and Berlin.

The Board of Directors of the Company is expected to implement the capital
increase on 4 December 2013. The New Shares will be included in the
existing stock exchange listings of the Company's shares on the Open Market
(Entry Standard) of the Frankfurt Stock Exchange and on the open markets
(Freiverkehr) of the Berlin Stock Exchange and the Stuttgart Stock Exchange
presumably on 5 December 2013.
 

About Grand City
Grand City Properties S.A. (ISIN: LU0775917882) is a public limited
liability company (société anonyme) incorporated under the laws of the
Grand Duchy of Luxembourg, having its registered office at 6, Boulevard
Pierre Dupong, L-1430 Luxembourg and being registered with the Luxembourg
trade and companies register (Registre de Commerce et des Sociétés
Luxembourg) under number B 165560., which focuses on investing in and
managing turnaround opportunities in the German real estate property
market, especially in large urban high-density areas.

Contact:
Grand City Properties S.A.
6, boulevard Pierre Dupong
L 1430 Luxemburg
www.grandcityproperties.com

Press Contact:
Katrin Petersen
Grand City Properties S.A.
T: +49 (30) 887088-1128
E: [email protected]
www.grandcityproperties.com

Disclaimer
This announcement does not constitute an offer to sell or issue, or the
solicitation of an offer to buy or subscribe for, securities to any person
in Germany, the Grand Duchy of Luxembourg, the European Union, Australia,
Canada, Japan, or the United States or in any jurisdiction in which such
offer or solicitation is unlawful. The shares of the company have not been,
and will not be, registered under the U.S. Securities Act of 1933, as
amended (the 'Securities Act'), and may not be offered, sold, delivered or
otherwise transferred in or into the United States except pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act. The offer and the sale of the shares of
the Company have not been, and will not be, registered under the applicable
securities laws of Australia, Canada or Japan. Subject to certain
exceptions, the securities referred to herein may not be offered or sold in
Australia, Canada or Japan or to, or for the account or benefit of, any
national, resident or citizen of Australia, Canada or Japan. There will be
no public offer of the shares in Germany, elsewhere in the European Union
or in the United States.

This announcement is directed at and/or for distribution in the United
Kingdom only to (i) persons who have professional experience in matters
relating to investments falling within article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
'Order') or (ii) high net worth entities falling within article 49(2)(a) to
(d) of the Order (all such persons are referred to herein as 'relevant
persons'). This announcement is directed only at relevant persons. Any
person who is not a relevant person should not act or rely on this
announcement or any of its contents. Any investment or investment activity
to which this announcement relates is available only to relevant persons
and will be engaged in only with relevant persons.

This announcement may contain projections or estimates relating to plans
and objectives relating to our future operations, products, or services,
future financial results, or assumptions underlying or relating to any such
statements, each of which constitutes a forward-looking statement subject
to risks and uncertainties, many of which are beyond our control. Actual
results could differ materially, depending on a number of factors.


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