PRESS & MEDIA
17. October 2016
GxP German Properties launches capital increase – real estate portfolios worth about €120 million secured
- Intended issue proceeds of €25 million – commitments of €16.5 million already received
- Capital increase against contribution in kind will be implemented by contribution of German Investment Management Holding GmbH
- Purchase agreement for office portfolio with above average yield in west German metropolitan areas concluded – attractive property portfolio of €120 million already secured
- Properties with strong FFO already at time of acquisition
- Listing in the Entry Standard of the Frankfurt Stock Exchange scheduled for November 2016
Berlin, 17 October 2016 – GxP German Properties AG (ISIN: DE000A1YCNN8) is executing the announced combined capital increase against contributions in cash and in kind according to the resolutions of this year’s Annual General Meeting as well as the acquisition of a further commercial real estate portfolio. As a first step, the shares in German Investment Management Holding GmbH will be contributed as consideration in kind against new shares in GxP. In parallel, a subscription rights offer via a cash capital increase will take place. The corresponding securities prospectus was published at www.gxpag.com.
In the context of the capital increase, current shareholders can exercise their legal subscription right at a ratio of 1:35 new shares. The subscription price will be €1.00 per share and the subscription period will run from 20 October, 2016 until 3 November, 2016. This subscription price represents a discount of 40 per cent compared to the current share price. Over-subscription is possible.
Shares not subscribed during the subscription period are to be offered to qualified investors as part of a private placement at the same price. From the capital increase against cash of up to 40,377,500 shares, the company intends to initially raise gross proceeds of €25 million to finance the current transactions. Trading of the subscription rights is not planned.
Currently, GxP German Properties is listed on the Munich and Stuttgart stock exchanges. A listing in the Entry Standard segment of the Frankfurt Stock Exchange will be realized immediately after the end of the subscription period and is scheduled for November 2016. The new shares that the management receives from the capital increase against contribution in kind are subject to a lock-up period until the end of 2017 and cannot be traded earlier.
The two capitalization measures will be used for the purchase of commercial properties and the contribution of the operational business of German Investment Management Holding GmbH (GIMH), Berlin, that is currently active in the market via its subsidiary GxP Asset Management GmbH. A portfolio with a total value of €31.7 million was already secured on September 6, 2016 and a further office portfolio worth €88.6 million was secured via a purchase agreement on 15 October, 2016. As a result, GxP will in total acquire ten office properties with a combined value of currently €120.3 million and an aggregate lettable space of around 95,000 square metres and high further value appreciation potential. With a vacancy rate of just around 14 per cent the portfolio already generates annualised rental income of around €8.7 million offering an above-market net rental yield of 7.2 per cent, which is substantially above the market average of 6,3 per cent*. The weighted average lease term (WALT) of the existing rental contracts stands at around 3 years. The combined purchase price of the total portfolio will be financed via bank loans amounting to around EUR 80 million that have already been agreed on with an attractive average interest rate of 2.2%, with the remainder of the purchase price of around €22 million paid by the proceeds of the cash capital increase. Already from these highly yielding acquisitions the company will be able to deliver strong sustainable annual FFO I.
The executive board of GxP German Properties AG, has today already received commitments for an amount of up to €16.5 million unsubscribed shares (16.5 million shares for EUR 1.00 each). This means that around two thirds of the desired cash contribution from the cash capital increase of €25 million have already been committed.
Johannes Meran, CEO of GxP: “With our years of operational experience in commercial real estate, and a highly attractive real estate portfolio, these two capital measures allow GxP a great start as a publicly listed company. Due to the extensive financing commitments, the successful implementation of the initial transactions is already secured. I am delighted by the vote of confidence of the shareholders who will accompany us on our path.”
Andreas Lewandowski, CFO of GxP: „These two initial transactions underline our ability and expertise in acquiring highly yielding, high quality assets in the German real estate market. Especially, our goal to generate strong FFO per share and NAV per share growth has been firmly implemented with these transactions.
* Source: Company analysis on the basis of comparable listed peer group
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.
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 http://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