VERIANOS Real Estate Aktiengesellschaft issues new corporate bond

• Private placement to a selected group of investors
• Issue volume of up to EUR 30 million
• Coupon of 6.00% p.a.; 5-year maturity
• Proceeds from the issue will primarily be used for co-investments in funds initiated by the company

Cologne/Frankfurt am Main, 20 February 2020 - VERIANOS Real Estate Aktiengesellschaft ("VERIANOS"), a listed real estate company (ISIN: DE000A0Z2Y48, WKN: A0Z2Y4) operating at the interface between the real estate and capital markets, will issue another corporate bond. This is the third bond issued by the company since its foundation in 2011. VERIANOS' current 6.5% bearer bond (ISIN: DE000A2G8VP3) with a volume of EUR 6.0 million and a term of five years was placed in 2018. The first bond of VERIANOS (ISIN: DE000A2BPU08) was repaid as scheduled last year. Just like the two previous bonds, the new bond will be targeted at a selected group of professional and semi-professional investors in a private placement. The issue has a volume of up to EUR 30 million and will be placed in several tranches in line with the corresponding investment opportunities. The first tranche has a volume of up to EUR 10 million. The interest rate is fixed at 6.00% p.a., and the new bond has a maturity of 5 years. The subscription period for the private placement starts today, 20 February 2020, and is expected to end on 3 March 2020 at 12:00 p.m., subject to an extension or early closure. The bond will be listed on the Open Market of the Frankfurt Stock Exchange.

Based on its existing solid financial structure, VERIANOS plans to primarily use the proceeds from the bond issue's first tranche for co-investments in existing real estate funds as well as in the VERIANOS European Real Estate Opportunities Fund and the VERIANOS Real Estate Mezzanine Fund, which are currently in the fundraising process. This will significantly expand the company's business activities, thus ensuring the sustainable, long-term development.

"After having established our diversified business model and built up our BaFin-regulated platform as a capital investment company, its is our medium-term goal to achieve accelerated, sustainable growth without compromising on the proven qualitative approach of our business model," said Tobias Bodamer, member of the VERIANOS Executive Committee. "This goal is being supported by the issue of our third bond. Thanks to our entrepreneurial independence, the high flexibility of our investment activities and our focus on the small and mid cap segment, VERIANOS is constantly presented with investment opportunities in the European core markets which offer attractive returns, with only little exposure to the general situation in the European real estate market. This is where we will now place a stronger focus and make better use of the platform we have created through additional funds."

Fundraising for the two new funds initiated by VERIANOS is on the finishing straight, commitments from anchor investors have been obtained. The issue of another corporate bond to realise co-investments in these vehicles together with the recently announced capital increase is a logical consequence. On the one hand, the funds invest directly in properties with value creation potential in Europe, initially with a focus on Germany and Spain (VERIANOS European Real Estate Opportunities Fund). On the other hand, the funds raised are to be used to grant mezzanine loans with a volume of between EUR 2.0 and 8.0 million per investment (VERIANOS Real Estate Mezzanine Fund). "The Mezzanine Fund is the logical expansion of our investment spectrum and we expect to generate synergies in the acquisition of investment opportunities. We target an internal rate of return in the double-digit range for both funds and, with regard to our investment strategy, we are well positioned both sectorally and geographically. In the small and mid-cap investment segment which VERIANOS focuses on, we see attractive investment opportunities even in the current market environment," says Tobias Bodamer.

The VERIANOS Management Board expects BaFin's approval to operate as a capital management company in accordance with the German Capital Investment Act to result in a significantly higher transaction volume with existing and new investment products and, consequently, in rising results going forward. To support its Europe-oriented business approach, the company is also currently in the process of converting its legal form from a German stock corporation into a Societas Europaea (SE) to be able to act as a legal entity throughout the EU, which, thanks to a monistic governance model, will also have a much more operational management structure in line with its size.

BankM AG as Lead Manager, Bankhaus Scheich Wertpapierspezialist AG and GBR Financial Services GmbH as Selling Agents as well as Heuking Kühn Lüer Wojtek as Legal Advisor and IR.on AG as communications consultant accompany the issue.

 

About VERIANOS
VERIANOS is a listed real estate company with headquarters in Cologne and offices in Frankfurt, Luxembourg, Madrid, Milan and Valencia. The company sees itself as a real estate partnership that acts for its customers at the interface of real estate and capital markets. With its business units Investment and Advisory, VERIANOS realises customised investment products and ambitious advisory and financing mandates for its clients.

Further information on VERIANOS Real Estate Aktiengesellschaft is available on

This publication constitutes neither an offer to sell nor a solicitation to buy any securities.
 

Contact:
VERIANOS Real Estate Aktiengesellschaft
Executive Committee - Tobias Bodamer
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Financial and business press:
IR.on AG
Frederic Hilke, Achim Josten
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