German-Austrian residential property group Buwog has commenced a cash capital increase by offering a total of up to 12.5 million Buwog shares with a subscription ratio of 1:8. According to the company, the maximum offer price amounts to €30 per share.
The offer price for the Buwog shares will be determined at the end of the subscription and offer period and is expected to be published on 2 June 2017.
'A timely investment of the generated funds primarily into acquisitions of new land plots in the three attractive markets of Berlin, Hamburg and Vienna demonstrates that we continue to execute on our organic growth strategy,' commented Andreas Segal (pictured), deputy CEO & CFO at Buwog. 'This will allow us to move forward with the creation of a listed portfolio of newly built properties, enable significant growth in rental income through portfolios we have developed ourselves, and will strengthen our balance sheet structure in the medium term.'
Full-service residential provider Buwog has been operating for 65 years and currently holds a property portfolio encompassing around 50,700 units located in Germany and Austria. The shares of the company have been listed on the stock exchanges in Frankfurt am Main, Vienna (ATX) and Warsaw since the end of April 2014.
'The positive share price development in the last few months has encouraged us to continue our strategic orientation combining asset management activity and vigorous property development featuring the elements of develop-to-hold and develop-to-sell,' concluded Segal.
