Coreo AG resolves to do a capital increase of up to EUR 10 million in new shares

Frankfurt am Main, Germany - 21 November 2018 - With today's approval by the Supervisory Board, the Management Board of Coreo AG initiated a capital increase, which was determined at the Annual General Meeting on 19 June 2018. The company's share capital shall be increased from EUR 9,360,000 up to EUR 19,360,000.00, by issuing up to 10,000,000 new ordinary bearer shares, with a proportional amount in share capital (EUR 1.00 per share) against contribution in cash. The subscription price is EUR 1.60 per new share. The new shares are entitled to dividends from 1 January 2018. They will be subscribed by Baader Bank Aktiengesellschaft, with the obligation to offer the shares to company shareholders for subscription at a ratio of 9:10 (nine existing shares entitle subscriber to ten new shares) during the subscription period at a price of EUR 1.60 per new share.

Apeiron Investment Group Ltd., Malta, who is a 31.24 percent stakeholder in Coreo AG has indicated its intention to exercise its subscription rights to the capital increase and to participate in a potential placement of unplaced shares.

Coreo AG intends to use the gross issue proceeds of up to EUR 16 million for the expansion of its real estate portfolio.

Subject to the approval of the required securities prospectus by the BaFin - Federal Financial Supervisory Authority, the subscription period is envisaged to run from 29th November 2018 (00:00h) until 13 December 2018 (24:00h).

Coreo AG will provide the securities prospectus with detailed information and risk warnings, immediately after the BaFin approval on its website www.coreo.de and make it available for download.

End of the ad hoc

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CORPORATE NEWS

With the net issue proceeds, Coreo AG plans to acquire further residential and commercial properties according to its growth strategy, mostly in the value add sector. Additional debt capital shall enable the purchase volume of the properties to be approx. three times the amount received from the capital increase. The refurbishment measures planned for the existing portfolio are already backed by equity and corresponding financing commitments. The proceeds from the capital increase will therefore be available exclusively for the further expansion of the real estate portfolio.

The asset appreciation based on the initial valuation of the real estate portfolio and the realized gains from property sales in 2018 sum up to more than EUR 6.5 million. They will be included in the NAV (net asset value) calculation as part of the IFRS annual financial statements and will be made available on the 31.12.2018. This shall confirm the pursued value-add investment strategy. As a result, the undiluted NAV of 2.07 per share calculated as of 31 December 2017 shall be increased significantly by 31 December 2018.

In the coming years, the additional hidden reserves from the real estate portfolio shall lead to a constant and significant increase in the NAV, through the implementation of the planned development measures.
 

About Coreo AG
Coreo AG, which has its registered office in Frankfurt am Main, is a dynamically growing real estate company with a focus on German commercial and residential properties. Investments are made in real estate with considerable potential for appreciation thru refurbishment and repositioning, preferred in A and B macro locations. The goal is to build up an efficiently managed, high-yielding real estate portfolio through prudent development and the sale of non-strategic properties.

Contact:
Coreo AG
Felix Krekel, CIIA
Investor Relations
Grüneburgweg 18
D-60322 Frankfurt a. M.
[email protected]
T: +49 69 219396-0