publity receives bank financing of around EUR 400 million for further

Press release
publity receives bank financing of around EUR 400 million for further
Balanced mix of equity and borrowing when acquiring properties creates additional latitude for returns
Financing for 15 office properties from German Pfandbrief banks has been concluded
Average interest rate for financing of less than 1.5% with a 5-year term
No plans to use the capital markets in the coming 12 months to achieve the growth target
Leipzig, 05 April 2016 - publity AG (Entry Standard, ISIN DE0006972508), an investor and asset manager for German
office properties, has broadened its financial stance and created additional latitude for accelerated growth using bank
financing for joint venture properties. publity is benefiting from the attractive low interest rates to finance property
purchases in future by using increased borrowing. This results in a significant decrease in the amount of equity needed
to realise the targets for property purchase volumes and for assets under management together with the associated
fees. This adjustment to the strategy has been agreed with the joint venture partners. In the first stage, publity has
now concluded financing for 15 office properties in Germany with German Pfandbrief banks for a total of around EUR
400 million with an interest rate of less than 1.5%. The loans all have a term of five years.
This financing, coupled with the recent capital increase with gross proceeds from the issue of around EUR 19.8 million
and a highly profitable business model means that publity has the capital required to achieve its target growth
without requiring any further capitalisation activities. The company does not plan to use the capital markets in the
coming 12 months. At the end of 2015 the assets under management more than tripled compared to 2014 to EUR 1.6
billion, and the real estate assets managed are expected to increase to more than EUR 5 billion by the end of 2017.
These bank-financed properties have been acquired as part of joint ventures with institutional investors. They are
located in urban areas in Germany. publity participates in property acquisitions with an interest of up to 3 percent in
the total investment volume. It then takes over end-to-end asset management and is also involved in selling the
properties at a profit. To date, property acquisitions have been exclusively equity financed. The objective is to increase
the LTV (loan to value), or the level of debt depending on the value of the real estate portfolio, to around 60% over the
medium term, and thus to further increase the pace of investments.
Press contact:
Financial press and investor relations:
edicto GmbH
Axel Mühlhaus/Peggy Kropmanns
Telephone: +49 69 905505-52
E-Mail: [email protected]
About publity
publity AG is an asset manager specialising in office properties in Germany. The company covers a broad value chain, from
purchases through to the development and sale of the properties, and also has a track record of several hundred successful
transactions. publity is characterised by its sustainable network in the real estate sector as well as banks’ Work Out departments,
and has excellent access to funding. The company executes its transactions quickly using a highly efficient process with tried and
trusted parters. In some cases, publity acts as a co-investor in joint venture transactions to a limited extent. publity AG’s shares
(ISIN DE0006972508) are traded on Frankfurt Stock Exchange’s Entry Standard.