Quartiers Properties acquires two construction-ready plots in Los Flamingos and carries out private placement of preference shares
The Board of Quartiers Properties AB (publ) (“Quartiers Properties” or “the company”) has decided to acquire two villa plots in the residential area of Los Flamingos, in the municipality of Benahavís. The underlying value of the plots amounts to EUR 1.6 million. The transaction is being carried out in corporate form, with Quartiers acquiring all shares in Wecap Spain SL (“Wecap”). In conjunction with the acquisition, Quartiers is taking over Wecap’s bank loans and repaying a loan to the seller of approximately EUR 330,000. The purchase price for all shares in Wecap amounts to approximately EUR 702,000. The shares in Wecap are being acquired through the issue of new preference shares. The seller has also entered into a commitment to subscribe for a further 475,000 preference shares, to be paid for in cash. Quartiers estimates that the construction and sale of the villas will take one to two years, and predicts an annual return from the deal of between 35 and 40 percent.
The seller will finance the cost of constructing the villas, and in return will receive additional consideration based on the profit made by the project. The additional consideration is calculated at 50 percent of the profit from the project after deduction of Quartiers’ costs for acquiring the shares in Wecap, and after the repayment of all Wecap’s loans.
The Board decided on the share issue based on the authorisation granted by the Annual General Meeting and registered with the Swedish Companies Registration Office on 4 June 2018. The company will issue a total of 1,194,547 new preference shares, increasing its share capital by SEK 29,864. The company will finalise the remaining share issue administration and register the issue with the Swedish Companies Registration Office as soon as possible.
The subscription price is SEK 10.00 per preference share, corresponding to total issue proceeds of SEK 11,945,470. The subscription price is based on the market value of the shares as traded on Nasdaq First North, and corresponds to a premium of 1.4 percent compared with the weighted average price over the last 30 days of trading. The right to subscribe for the new shares is afforded to the seller, Bernhard von der Osten-Sacken.
Prior to the share issue there were a total of 54,542,966 shares in the company, of which 6,080,070 were preference shares and 48,462,896 ordinary shares. The number of votes in the company before the share issue was 490,709,030. Following the issue, the total number of shares in the company will amount to 55,737,513, of which 7,274,617 are preference shares and 48,462,896 ordinary shares. The number of votes will rise to 491,903,577. The share issue entails a dilutive effect of up to 2.1 percent of the number of shares outstanding in the company, and a maximum of 0.2 percent of the number of votes.
The preference shares that are issued are of the same series that is currently admitted for trading on Nasdaq First North in Stockholm.
For further information, please contact:
Quartiers Properties
Marcus Johansson Prakt, Interim CEO
Email: marcus.prakt@quartiersproperties.se
Phone: +46 (0)72-018 59 98
The company in brief
Quartiers Properties is a Swedish property development company 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 (0)8-503 015 50.
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 3 August 2018 at 2.30 p.m.