PRESS & MEDIA
08. November 2016
GxP German Properties exceeds target volume of capital increase and places 27.0 million new shares
- Target volume of the cash capital increase of € 25 million exceeded due to strong demand from existing and new investors
- Use of proceeds for the acquisition of two commercial property portfolios in the value of € 120 million
- Listing in the Entry Standard of the Frankfurt Stock Exchange scheduled for November 2016
Berlin, 8 November 2016 – GxP German Properties (GxP) (ISIN: DE000A1YCNN8) has successfully concluded its cash capital increase. In total, 27.0 million new shares were subscribed or placed at a subscription price of € 1.00 per share, generating total issue proceeds of € 27.0 million for the Berlin-based commercial property specialist. Therefore, the target volume of the capital increase was exceeded.
6.2 million new shares were subscribed as part of the public rights offering, with 20.8 million new shares issued as part of a private placement. Johannes Meran, CEO of GxP, also acquired 500,000 shares in this context. The issue of 27.0 million new shares and the registered non-cash capital increase raised the total number of shares to 69.3 million with each share having a notional value of one euro.
The shares that the Management received from the contribution in kind are subject to a lock-up until year-end 2017. The free float stands at around 44 per cent after conclusion of the transaction.
The inclusion of the existing and new shares in the Open Market of the Frankfurt Stock Exchange (Entry Standard segment) is scheduled for November 2016.
Despite a challenging capital market environment in the property sector, the cash capital increase generated significant interest amongst investors. Due to the strong demand a total of € 27.0 million was placed, by which the pro forma Loan to Value (LTV) will be reduced and the cash capital for future acquisitions increased.
Together with the negotiated bank loan, the inflow of funds has been earmarked for the previously announced acquisition of two commercial property portfolios. In total, these portfolios comprise of ten commercial properties with a total value of roughly € 120 million. With an initial vacancy rate of around 14 per cent, the portfolios have high value appreciation potential.
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States, Australia, Canada, Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.
This release is not a prospectus. Investors should not purchase or subscribe for any shares referred to in this press release except on the basis of information in a prospectus issued by the Company in connection with the offering of such shares (www.gxpag.com/investor-relations).
This release is not an offer of securities for sale in the United States of America. The securities referred to in this press release have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration or in a transaction not subject to the registration requirements of the Securities Act. There will be no public offer of the securities in the United States of America.
Subject to certain exceptions under the Securities Act, 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.
GxP German Properties AG
With its headquarters in Berlin, GxP German Properties focuses on the Acquisition, Ownership and Management of office and retail properties in Germany. The investment strategy focuses on attractive commercial properties in the Core+/Value add segments in metropolitan regions and selected mid-sized cities in Germany. The company’s strategy is to leverage significant appreciation potential through proactive portfolio management whilst safeguarding sustainable rental revenues at the same time. To this end, it draws on both its many years of experience in the property market and its extensive network.
The company’s website can be accessed at www.gxpag.com
GxP German Properties AG
Europa Center 19. OG
10789 Berlin, Germany
TEL.: +49 (0)30 886 267 40
FAX: +49 (0)30 886 267 411
Kirchhoff Consult AG
20459 Hamburg, Germany
TEL.: +49 (0)40 609 186 65
FAX: +49 (0)40 609 186 60