Romanian developer One United Properties said this week that its shareholders have approved plans to carry out a €70 mln capital increase to fund the company's next phase of growth.
The company is planning to expand into the affordable premium housing segment, targeting 30% annual returns on its invested equity.
'The planned share capital increase is crucial for this growth, and we encourage our shareholders to boost their investment in One United Properties with approximately 10% of their existing holding. This investment is key to doubling our business in the next five years and achieving a fourfold increase within the next decade,' commented Andrei Diaconescu, co-founder and executive member of the Board at One United Properties.
The company has land under negotiation for a further 10,000 residential units exclusively for this sub-segment, with the first memorandum of understanding for a 21-hectare plot of land that will host 5,000 units already signed.
The share increase operation, which will see the issue of 1.75 bn shares, is planned to begin in August and is expected to close by October 2024.
The shares will be offered at a nominal value of RON 0.2. Around 60% of the capital intended to be raised by the company has already been committed by the two co-founders and executive members of the board of Directors, Victor Capitanu and Andrei Diaconescu, as well as the chairman of the Board, Claudio Cisullo and Board Member, Marius Diaconu.
One United Properties was founded during the global financial crisis to take advantage of development opportunities emerging from the credit squeeze by two businessmen, Victor Capitanu and Andrei Diaconescu. It has since expanded to new segments such as offices and retail and carried out a number of capital raisings including an Initial Public Offering on the Bucharest stock exchange in 2021, to finance its development drive in the capital city.
Capitanu and Diaconescu together hold 56% of the company’s shares, with the remaining capital held by some 9,000 shareholders.
In the first nine months of 2023, One United Properties sold and pre-sold 795 apartments, up 206% on the same period a year earlier.
Although the company derives most of its profits from the development business, it also holds a number of offices such as the fully-let One Tower, One Victoriei Plaza and the One Cotroceni Park mixed-use development.
