UBM Development has raised €250 mln through the placement of corporate bonds and three disposal transactions.
The Vienna-listed company announced on 5 October that it had placed a new corporate bond with a total volume of €150 mln.
The issue was announced on 12 September as a combination of an exchange offer for the 2014-2019 UBM bond at a conversion ratio of 1:1 plus €28.78 cash premium, and a subsequent cash subscription offer for a total volume of initially €100 mln. The bond was lifted to €150 mln to cater for demand from investors.
Separately, the Austrian developer has recently completed the disposals of three development assets. On 12 October UBM completed the sale of its stake in Hyatt Regency Hotel in Amsterdam to Dutch joint venture partner Aedes Real Estate.
Construction of the five-star hotel in the centre of Amsterdam began in 2014 and it comprises 211 rooms and 38 garaged parking spaces, unusual for the centre of Amsterdam. UBM said the sale would have an 'effect on total output' of €49 mln and 'effect on net debt' of €26 mln.
UBM sold the Chitila logistics park in Bucharest to Czech firm CPY Invest for €17 mln at the beginning of October. Two weeks earlier UBM sold a micro-living project with 131 serviced apartments in Vienna's Quartier Belvedere Central to Corestate Capital for €27 mln.
SRC Research said UBM was well positioned with a solid balance sheet and plenty of leeway.
'With the recent transactions and the issuance of the new bond, UBM extends its high cash position and further reduces its net debt, as strategically planned. This enables the company to expand their already very strong pipeline (€1.7 bn till 2020) by adding future projects in the coming quarters,' SRC said.
SRC, a bank-independent analysts' house for financial and real estate stocks, SRC said that the moves confirmed its Buy recommendation for UBM shares and it increased its €44 to €46.
