Luxembourg-based Orco Property Group intends to raise EUR 150 mln from the private placing of 1.3 million shares with institutional investors at EUR 115 per share to help fund the expansion of portfolio in the central European real estate sector. The net proceeds are expected to come to EUR 142 mln, excluding the over-allotment option of 197,000 shares.
Luxembourg-based Orco Property Group intends to raise EUR 150 mln from the private placing of 1.3 million shares with institutional investors at EUR 115 per share to help fund the expansion of portfolio in the central European real estate sector. The net proceeds are expected to come to EUR 142 mln, excluding the over-allotment option of 197,000 shares.
Orco's shares are listed on Euronext Paris and the main market of the Prague Stock Exchange and the company has applied for the new shares to be admitted to trading on both stock exchanges. Additionally, Orco has applied for all its shares to be admitted to the Warsaw and Budapest stock exchanges by 21 June.
Citigroup Global Markets acted as sole global co-ordinator and sole bookrunner of the offering. Wood & Co. acted as co-lead manager and Dom Maklerski Banku Handlowego, a member of Citigroup, acted as selling agent in Poland.
Earlier this week, Orco Germany and Morgan Stanley finalised the acquisition of commercial property owner Gewerbesiedlungs-Gesellschaft (GSG) from IBB-Holding, a unit of Investitionbank Berlin, for EUR 400 mln. GSG is the largest provider of commercial property in the Germany capital, with a portfolio of 800,000 m2 of commercial and light industrial space.
