Quartiers Properties is publishing an information brochure in connection with the ongoing Rights Issue, and is announcing a new assessed net asset value of SEK 8.46 per ordinary share

The Board of Directors of Quartiers Properties AB (publ) (hereinafter “Quartiers Properties” or “the Company”) is hereby publishing an information brochure in connection with the ongoing Rights Issue of preference shares. The brochure contains preliminary profit figures for the period January–November 2019 which, together with the changes in value for the year, provide a new assessed net asset value of SEK 8.46 per share, corresponding to a net asset value discount of 41.4% given yesterday’s closing price for the ordinary share. At the same time, the Company is announcing that Hotel Boho Club will be officially opening on 15 December 2019. The brochure is enclosed with this press release, and will be available to download from the Company website at www.quartiersproperties.se.

Message from the CEO

Before we wind up 2019 and close the books for the year, the time has come for a Rights Issue of preferential shares, where we hope that as many of our shareholders as possible will take the opportunity to participate. We have made great progress during the year, which provides an excellent basis for 2020 to be an even better year, and one that is extremely important to us with regard to optimising the operation of our investment properties, refinancing the liability side of our balance sheet, and launching the Ocean View project with its 60 new premium apartments. 

Over the past two years, we have not only developed our property portfolio – which has grown by 56% in value during the period – but also reinforced our organisation and established a broad network of financiers on the Spanish finance market. This network has opened the door to around SEK 150 million in financing outside the stock market, making it possible for us to complete important investments in our property holdings. These investments, in turn, have contributed to sales income from our business development segment, and enabled us to renovate and operationalise Hotel Boho Club. With larger holdings of properties generating cash flow, we are now in a position to talk to international players in the loan business, and we have recently started a process with the consultancy company JLL (Jones Lang LaSalle) in London with regard to refinancing the Company’s liability side with a structure that will promote growth and the long-term perspective. Above all, we are looking to improve our existing repayment terms, as the Spanish banks are currently demanding full repayment of the capital in 12–15 years, irrespective of the degree of borrowing in question. The new structure we are working on is thus intended to improve our financial cash flow, and to allow us to push ahead with new investments rather than having to make hefty repayments to the bank. Preferential shares are a good fit for the intended structure, as long as we make sure that over time, our investments generate sufficient funds to cover our financing costs and allow us to generate dividends for our ordinary shareholders. 

I will personally be participating in the issue, and a number of major shareholders have let it be known that they anticipate jointly subscribing for around half of the issue sum. This is pleasing to hear, and both I and our Board of Directors anticipate strong support from our 1,000 or so other shareholders. 

With an eventful 2019 behind us, we will be entering 2020 in an even stronger position, and look forward to your continued confidence as a shareholder in Quartiers properties. 

Best regards.

Marcus Johansson Prakt, CEO

Preliminary timetable for the issue

Record date for shareholders: 11 December 2019

Information brochure/offering documentation available on the Company’s website: 12 December 2019

Subscription period begins: 13 December 2019

Trading in rights and BTA begins: 13 December 2019

Last date for trading in rights: 2 January 2020

Subscription period ends: 7 January 2020

Estimated date of publication of outcome: 8 January 2020

Settlement date for subscribed non-preferences shares: 13 January 2020                     

Issuing institution

Mangold Fondkommission is acting as the issuing institution for the issue and Advokatfirman Wåhlin is the legal advisor.

For further questions, please contact:

Quartiers Properties 

Marcus Johansson Prakt, CEO
Email: marcus.prakt@quartiersproperties.se
Phone: +46 72-018 5998

The company in brief
Quartiers Properties is a Swedish property development company offering innovative design and high quality, with operations on the Spanish Costa del Sol. The Company was founded in 2014 and has since built up a property portfolio of investment properties and project properties. The Company develops, sells and leases property.

Mangold is the Company’s certified adviser. Mangold can be contacted on +46 8-503 015 50 or by emailing ca@mangold.se.

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Quartiers Properties AB (publ) is required to disclose this information under the EU Market Abuse Regulation. This information was provided for publication through the agency of the contact person above on 12 December 2019 at 11.50 a.m.

IMPORTANT INFORMATION

This press release may not be made public, published or distributed, either directly or indirectly, in or to the United States, Canada, Japan, Australia, Hong Kong, New Zealand, Singapore, South Africa, Switzerland or other jurisdiction where such action, entirely or partially, is subject to legal restrictions or would require additional prospectuses, registration or actions other than those arising out of Swedish law. The information in this press release may not be forwarded or reproduced in such a way that is in breach of such restrictions or would result in such requirements. Actions in breach of these directions may constitute a breach of applicable securities legislation.

No subscription rights, paid subscribed shares or shares have been registered, or will be registered, under the United States Securities Act of 1933, in its current wording, (‘Securities Act’) or under any equivalent law in any other jurisdiction in the United States and may therefore not be offered or sold, directly or indirectly, in or to the United States except for in accordance with an applicable exception from, or by means of a transaction not covered by, the registration requirements of the Securities Act and in accordance with the securities legislation in a relevant state or other jurisdiction of the United States.