According to a statement issued by the company, Property Group has closed on 27 September the voluntary exchange offer of bonds issued by
the Germany or Property Group into new notes. The offer was running from 6 September until 27 September. Out of the € 77.7m bonds on the books of the company, 94% will be changed into New Notes. The new bonds will be listed on Luxembourg Stock Exchange and will mature on 28 February 2018.
The closing of the offer was the last step to be done by in the restructuring of its bonds obligation. The process which started at the beginning of the year led to an increase in the number of shares from 16.9m to 108m and issuance of € 73.0m new bonds. The process leaves the company in a much better financial position but with the downside of a significant dilutive effect for investors that held shares before the process started, with the NAV decreasing from € 22.6 per share to € 5.6 per share. We view the news as neutral.