The shares of Griffin Premium RE.. N.V. debuted on the Warsaw Stock Exchange on Thursday, 13 April 2017, making it the first REIT-type firm listed on the WSE. The share price at the opening of the trading session was PLN 5.70, translating into a market capitalization of Griffin Premium RE.. of PLN 890 million (about EUR 206 million).
Dorota Wysokińska-Kuzdra, CEO of Griffin Premium RE.., commented: “We are very pleased that Griffin Premium RE.. has become the first REIT-type company listed on the Warsaw Stock Exchange. In a certain sense, we are opening a new chapter in the development of the WSE and the Polish capital market. Until now, Polish investors, particularly retail investors, have not had a convenient opportunity to invest in the commercial real estate market. By buying shares of Griffin Premium RE.., they can indirectly become co-owners of nine attractive office and office/retail properties in our portfolio, with a combined value of over EUR 500 million, and thus participate in the rental income from these properties. Even though in Poland we are still at the stage of creating legislation regulating the activity of REIT entities, we already offer investors the benefits of a classic REIT, that is, distribution in the form of a regular dividend of the funds derived from letting of commercial real estate.”
Jarosław Grzywiński, acting CEO of the Warsaw Stock Exchange, said: “This is a special day for the Polish capital market and real estate market. We are very pleased that a company is debuting on the Polish stock market with the intention of transforming into an REIT, a fund managing real estate, aimed not only at institutional investors but primarily at retail investors.”
The total value of the public offering of shares of Griffin Premium RE.. was over PLN 508 million (about EUR 118 million), and it was one of the largest IPOs on the Warsaw Stock Exchange in recent years. The Company obtained proceeds from the issue of new shares in the anticipated amount of over PLN 126 million, which will be used for expansion of the property portfolio. As announced, the Company intends to use about EUR 18 million for purchase of the West Link office building being built by Echo Investment in Wrocław, which is to be completed at the end of the 1st quarter or beginning of the 2nd quarter of 2018 and is already pre-let nearly in its entirety to a renowned tenant, Nokia, for a period of 7 years. Griffin Premium RE.. will invest the other proceeds in three office projects being realized by Echo Investment in Warsaw.
In the offering, new investors were allotted a total of 89,167,223 shares, whose price was set through book-building at PLN 5.70 per share.
At the opening of the first day of trading on the WSE, 13 April 2017, the Company’s shares were trading at PLN 5.70, equal to the price in the public offering, translating into a market capitalization of the company of PLN 890 million (about EUR 206 million).
In the IPO of Griffin Premium RE.., Bank Zachodni WBK S.A. and Joh. Berenberg, Gossler & Co. KG served as the global coordinators and joint bookrunners, while Dom Maklerski BOŚ S.A. acted as co-lead manager of the offering.
About Griffin Premium RE..
The Company was founded in December 2016 through a carve-out of nine existing attractive properties from a portfolio created and managed by Griffin Real Estate, a leading and dynamically developing investor on the commercial property market in Poland.
The total market value of properties in the Company’s portfolio as at the end of 2016 was approximately EUR 514 million and annualized net operating income (NOI) from lease of these properties and lease guarantees granted by selling shareholders was approximately EUR 34 million. The Company is incorporated in the Netherlands and operates in a structure similar to a REIT (real estate investment trust), i.e. an entity that generates income primarily from renting real estate and regularly pays out its earnings to shareholders in the form of a dividend.
The intention of Griffin Premium RE.. is to change its legal form in the future to a Polish joint-stock company meeting REIT requirements when Poland adopts the relevant regulations governing the operation of this type of entity, and assuming that the conversion will be beneficial for the Company’s shareholders.
Even before formally obtaining REIT status in Poland, Griffin Premium RE.. intends to regularly pay out in the form of a dividend about 65% of its funds from operations (FFO). The dividend rate is estimated at 6.5% per annum (calculation reflecting the maximum price of the offer shares, based on financial projections for 2017; the dividend for 2017 will be paid based on financial flows generated in the 2nd to 4th quarters of 2017).
The Company has a geographically diversified portfolio with a well-balanced tenant base. It currently comprises nine commercial properties with a total GLA of more than 170,000 m2, including six pure-office projects and three mixed-use office and retail buildings. They are all in prime locations in the city centre or on the main streets of five of the seven largest Polish cities: Warsaw, Wrocław, Łódź, Kraków and Katowice.
The experienced management team at Griffin Premium RE.. oversees a high-quality diversified tenant base for the properties in the Company’s portfolio, representing a wide array of industries and sectors. Long-term business relations with key tenants translate into long-term lease contracts and stable rental income for the Company.
These materials are for promotional purposes only and under no circumstances shall constitute the basis for a decision to invest in the shares of Griffin Premium RE.. N.V. (the “Company”). The prospectus together with supplements thereto, which was approved on March 13, 2017 by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten), the Netherlands capital markets authority and notified to the Polish Financial Supervision Authority, passported into Poland and published (the “Prospectus”), was prepared in connection with the public offering and admission and introduction of the Company’s securities to trading on the regulated market operated by the Warsaw Stock Exchange (“WSE”) and is the sole legally binding document containing information on the Company and the offering of its securities in Poland (the “Offering”). The Prospectus can be obtained from the website of the Company (www.griffin-premium.com), Bank Zachodni WBK S.A. (www.dmbzwbk.pl) and the Netherlands Authority for the Financial Markets (www.afm.nl). It may be unlawful to distribute this document in certain jurisdictions. This document is not for distribution in Canada, Japan or Australia. The information in this document does not constitute an offer of securities for sale in Canada, Japan or Australia.
These materials are not an offer of securities for sale, or the solicitation of an offer to purchase securities, in the United States. Securities may be offered or sold in the United States only when registered in accordance with the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or pursuant to an exemption from the registration requirement of the U.S. Securities Act. The Company does not plan to register the Offering or any portion thereof in the United States.
Statements contained herein may constitute “forward-looking statements”. Forward-looking statements are generally identifiable by the use of the words “is likely to”, “aim”, “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
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