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Noratis AG: Fast-growing portfolio developer of residential properties prepares to go public
– Portfolio developer of residential real estate is planning an IPO in the Scale market segment
– Public offer from June 21, 2017 to June 27, 2017, with a price range between EUR 18.75 and EUR 22.75 per share
– Use of the gross proceeds from the issuance of new shares of up to EUR 45.5 million to realise growth opportunities in the market for properties with development potential on the outskirts of urban areas
– Free float of up to 55% with full placement of new shares and fully exercised greenshoe option
Eschborn, June 19, 2017 – Noratis AG (www.noratis.de), a dynamically growing portfolio developer of residential real estate (“Noratis”), is planning an IPO in the Scale segment of the Frankfurt Stock Exchange Open Market. The offer consists of an initial public offering in the Federal Republic of Germany and a private placement to qualified investors in additional countries outside of Germany and the United States of America. The underwriter is ICF BANK AG as sole global coordinator and sole bookrunner. The public offer for 2,000,000 new shares will begin on June 21, 2017, and is expected to end on June 27, 2017. The initial listing is planned for June 30, 2017. The price range within which purchase offers can be made during the public offer phase is EUR 18.75 to EUR 22.75 per share.
Niche positioning as a portfolio developer of residential real estate
Noratis plans to invest the gross proceeds from the capital increase of up to EUR 45.5 million in further growth. As a portfolio developer of residential real estate across Germany, the company operates in an attractive niche segment of the market. It clearly focuses on existing real estate with development potential, mostly housing estates, employee housing and quarters of the 1950s to 1970s in cities with a population of more than 10,000 and on the outskirts of urban areas. Potential often lies in common maintenance backlog and the vacancy it often causes. Noratis pursues this potential during the period in which it holds a property through both intensive management and investments. Noratis typically sells the properties after two to three years in block sales to institutional investors or as single residential units to private individuals. Since only 2014, Noratis has acquired, modernised and successfully sold a total of more than 1,300 residential units with a volume of around EUR 100 million in various locations throughout Germany including Dormagen, Bünde and Mayen. As a result, the company has gained an excellent reputation among well-known banks and market participants. A nationwide network of more than 4,000 contacts in the real estate sector contributes to Noratis’ well-filled project portfolio. Noratis focuses specifically on those offers that meet its requirements. As a result of current rental income from the date of purchase, which normally covers the operating and capital costs of the property, Noratis has a financial stability similar to that of a portfolio holder. However, Noratis can also increase its return through sales profits without bearing the full risk of a property developer.
CEO Igor Christian Bugarski states, “Through our value enhancement measures, we are maintaining and creating housing for those with medium and small incomes. There is an enormous demand in this segment, driven by demographic trends like those toward single households and the growing demand for residential space per person. This sustained, high demand, however, cannot be adequately covered by new constructions, especially not at adequate prices. Our goal is to satisfy all project participants, such as sellers, tenants and buyers. We are able to achieve this by visibly improving properties both inside and out, as well as by reducing vacancies and creating valuable real estate.”
CFO André Speth adds, “Efficient structures and our highly standardised value-enhancing measures guarantee a high level of cost control. We cover the most important elements of the value chain with our employees and centrally control all service providers. In recent years, Noratis has established the prerequisites for its future growth by optimising processes and structures in acquisition, development, asset management and sales. Only moderate additional investments are required to expand our business activities which make our business model scalable. In order to maximise our growth potential, we want to strengthen our equity base. Improved capital resources will help us to significantly expand our competitiveness and our ability to act on the purchasing side, thereby constantly utilising attractive market opportunities. Our goal is clear: we want our business to continue growing and want to position ourselves as an attractive dividend stock with manageable risks.”
Fiscal year 2016 with record figures for all key indicators
In fiscal year 2016, Noratis generated group revenues (HGB) of EUR 44.6 million, compared to EUR 23.8 million in the previous year. Around 85% of revenues were generated from portfolio sales (2015: 80%). The revenue mix was rounded off by renting revenues from the properties held in the portfolio. The profit for the period improved disproportionately to EUR 4.2 million (2015: EUR 1.1 million). In the first quarter of 2017, this growth path was continued with revenues of EUR 29.8 million and a record profit for the period of EUR 5.1 million. Two-thirds of the previous year’s revenues were thus achieved after only three months. At the same time, the quarterly result exceeded the result of the entire previous year thanks to the second block sale at the Dormagen site. With around 1,100 residential units currently in the project portfolio, some 400 of which were acquired in the first half of 2017, Noratis can enjoy high planning security for the rest of the year.
Offer details
The offer consists of an initial public offering in the Federal Republic of Germany and a private placement to qualified investors in certain countries outside Germany and the United States of America pursuant to Regulation S of the United States Securities Act of 1933, as amended. There is also a greenshoe option of up to 200,000 shares (10% of the underlying transaction), each of which is proportionate to the existing stock of Norlig GmbH of the company founder Oliver C. Smits and SIA Hansahold. These two current shareholders each hold a third of the existing share capital (2,000,000 shares at EUR 1.00 each). The remaining 33.33% are held by CEO Igor Christian Bugarski. The company and the shareholders are subject to customary lock-up periods of up to twelve months. If the greenshoe option is fully a free float of 55% (2,200,000 of 4,000,000 shares) will be achieved.
A corresponding securities prospectus is expected to be approved by the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) on June 19, 2017. It will then be available free of charge in the Investor Relations section of the company’s website.
Noratis AG (www.noratis.de) is a dynamically growing portfolio developer of residential real estate located in Eschborn near Frankfurt. The company acquires properties with development potential across Germany, mostly housing estates, employee housing and quarters from the 1950s to 1970s in cities with more than 10,000 inhabitants or on the outskirts of urban areas. After acquisition, Noratis performs an intensive value enhancement of the properties and subsequently sells them in block sales or individually as condominiums. Thereby Noratis offers housing with an attractive price/performance ratio for tenants with medium and small incomes. Since only 2014, Noratis has successfully completed 14 projects with more than 1,300 residential units. The company generated revenues of EUR 44.6 million in fiscal year 2016 and has grown at an annual average of 63% since 2014.
Contact Investor Relations:
cometis AG
Philipp Oksche
Unter den Eichen 7
65195 Wiesbaden
Germany
Tel. +49 (0) 611 20 585 5 35
E-mail: oksche@cometis.de |
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Disclaimer
This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities. Any such offer will be made solely on the basis of the securities prospectus to be published as approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). The information legally required to be provided to investors is contained only in the securities prospectus. The securities prospectus is expected to be available free of charge on the internet at the website of the issuer www.noratis.de and during normal business hours at the issuer, on June 19, 2017.
The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended (“Securities Act”)) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in the United States of America. The securities have not been and will not be registered under the Securities Act and may not be offered or sold in the United States of America absent of registration, unless there is an exemption from registration under the Securities Act. The issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the securities in the United States of America.
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