30 05 2012

ESTAVIS AG announces EUR 17.2 million convertible bond issue

The Management Board of ESTAVIS AG has adopted a resolution to issue convertible bonds totalling up to EUR 17.2 million. The company plans to use the proceeds to fund initial purchases of properties which will form a high-return investment portfolio.

The conversion price will be set at EUR 2.40, and existing shareholders will be granted subscription rights at a ratio of 2:1. The bonds will bear an interest coupon of 7.75% p.a. with final maturity on 25 June 2017.

The company will use the proceeds of the bond issue to optimise its financial structure and to grow through the establishment of new investment activities in German residential real estate.

“Our aim now is to use this to very quickly launch our new strategy and to build a portfolio of investment properties which will generate good cash flows from day one,” says Andreas Lewandowski, Managing Director of ESTAVIS, explaining that the company has identified a market niche for this purpose of residential properties involving amounts which are generally too large for individual investors but too small for institutional investors and funds. “We have access to these buying opportunities, and we are in a position to integrate these into a complete investment portfolio and to professionally manage these properties while their market values also appreciate,” adds Lewandowski.

ESTAVIS AG is a listed property company focusing on residential properties. Through its purchasing network, which extends throughout Germany, ESTAVIS AG identifies property portfolios with great value-added potential and uses its management expertise to harness this potential efficiently. In addition to the regular cash flows generated from its real estate holdings, ESTAVIS delivers investment returns through gains on tenant privatisation. ESTAVIS AG is headquartered in Berlin and is listed on the Prime Standard of the Frankfurt Stock Exchange (ISIN: DE000A0KFKB3 / WKN: A0KFKB).

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