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- Subscription period starting on 26.10.2020 and scheduled until 09.11.2020
- Noratis corporate bond with a volume of up to EUR 50 million
- Inflow of funds for further profitable expansion of the residential portfolio in Germany
- Strong anchor shareholder Merz Real Estate accompanies expansion strategy
Eschborn, 23 October 2020 – The Management Board of Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK, “Noratis”) has decided, with the approval of the Supervisory Board, to issue a corporate bond 2020/2025 (ISIN: DE000A3H2TV6) with an interest rate of 5.50 % p. a. and a volume of up to EUR 50 million. The subscription period within the framework of the public offer in Germany, Austria and Luxembourg starts on 26.10.2020 and is scheduled to run until 09.11.2020 (12.00 pm), save a preliminary closing or extension.
The Noratis corporate bond with a term of 5 years is issued in denominations of EUR 1,000. Subscription orders may be placed, amongst other things, through the subscription functionality “DirectPlace” of Deutsche Börse AG (from 27 October 2020, 9 am, onwards). In addition, a private placement of the bond is made with institutional investors in other European jurisdictions. The inclusion of the bond in the stock exchange trading in the Open Market (Quotation Board) of the Frankfurt Stock Exchange is scheduled for 11.11.2020. The Sole Global Coordinator and Bookrunner is ICF BANK AG from Frankfurt. The corresponding securities prospectus for the corporate bond 2020/2025 of Noratis AG has been approved today by the Luxembourg Financial Supervisory Authority CSSF. Moreover, the Federal German Financial Supervisory Authority BaFin as well as the Austrian Financial Markets Supervisory Authority FMA have been notified.
With the proceeds from the corporate bond Noratis plans to extend its successful business model as a portfolio developer of attractive and at the same time affordable living space in Germany, and to invest into other profitable real estate portfolios. Noratis currently has a real estate portfolio of more than 3,400 residential units in Germany, including properties already acquired but not yet recognised in its financial statement. During the first half-year 2020 the company generated rental income of EUR 8.0m. Consequently, the rental income was 35 percent above the level of the prior year period. At the end of the first half-year 2020 the equity ratio amounted to a very solid 22.6 percent according to German GAAP (HGB), and in September 2020, Noratis strengthened its equity significantly through a capital increase with an inflow of a gross amount of EUR 16.9 million. With Merz Real Estate GmbH & Co. KG (Merz), which is part of the Merz Group, Noratis has a strong anchor shareholder which accompanies the company in its expansion strategy. At present, Merz has a stake of around 47.7 percent in Noratis. Within the framework of an investor and fixed subscription agreement, Merz committed at the beginning of the year to invest up to EUR 50 million equity in Noratis through capital measures up to the end of 2024.
As a portfolio developer Noratis combines the advantages of portfolio property management, such as plannable earnings with the yield opportunities of property development. The developer yields are only recognised in the profit and loss account according to German GAAP (HGB) after the property has been sold; in the meantime, they constitute hidden reserves in the balance sheet. For the subscribers to the new corporate bond Noratis generates a steady return – 5.50 percent every year.
The approved securities prospectus is available for downloading on the website www.noratis.de in the Investor Relations section as well as on the website of the Luxembourg Stock Exchange (www.bourse.lu).
This publication represents neither an offer to sell nor an invitation to buy or subscribe to securities in any jurisdiction nor a securities prospectus within the meaning of Regulation (EU) 2017/1129 as amended (“Prospectus Regulation”). The public offer has ended and was made exclusively on the basis of a Securities Information Sheet which was published on the website of the company (www.noratis.de) in the “Investor Relations” section.
The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in the United States of America. The securities 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 or sold in the United States of America absent registration or an exemption from registration under the Securities Act. The issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the securities in the United States of America.
This publication is only addressed to and directed at persons in member states of the European Economic Area (other than Germany) who are ‘qualified investors’ within the meaning of Article 2(e) of the Prospectus Regulation (‘Qualified Investors’). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at, Qualified Investors who (i) are 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, as amended (the ‘Order’), (ii) are high net worth entities falling within Articles 49(2)(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as ‘relevant persons’). Any investment or investment activity to which this publication relates is only available to and will only be engaged in with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors. Any other persons who receive this publication in the European Economic Area (other than Germany) should not rely on or act upon it.
This publication is not an offer of securities for sale in Canada, Japan, Australia or South Africa.