GRAND CITY PROPERTIES S.A.: Share of 90.6% of the Convertible Bonds 2012-2017 converted

Company Redemption of outstanding Convertible Bonds

Luxembourg / Berlin, 3 September 2013 - Grand City Properties S.A. (the 'Company') announces that it has now received further conversion notices in respect of Convertible Bonds (Series A, XS0839410221, WKN A1HBF8) (the 'Convertible Bonds') representing EUR 9.9 million in respect of the Convertible Bonds. Consequently, a total of EUR 90.6 million in principal value of the Convertible Bonds have been converted into equity share capital in the Company.

As a result of the recent conversions in respect of the Convertible Bonds, the issued equity share capital of the Company has increased by EUR 9.9 million, resulting in a decrease of debt in the same amount, which aggregates to a total amount of EUR 90.6 million of all conversions. Due to the recent conversions of Convertible Bonds, 2,475,000 new shares were issued by the Company, accumulating to 22,650,000 of new shares as a result of such conversions. The Company's total number of issued shares as at the date of this announcement equals 86,150,000.

As at today's date, EUR 9,400,000 of the Convertible Bonds remain outstanding.

In accordance with the terms and conditions of the Convertible Bonds, the Company has resolved to exercise its right to redeem the outstanding Convertible Bonds and a formal notice to this effect was sent today to holders of the Convertible Bonds. Following the service of such notice, holders of the Convertible Bonds can now decide to either (i) exercise their conversion rights in respect of the Convertible Bonds by no later than 11 October 2013 or (ii) elect to take no action in respect of their conversion rights, which will result in their holding of Convertible Bonds being redeemed on the optional redemption date, being 18 October 2013.

After the full redemption or conversion of the remaining Convertible Bonds, all obligations of the Company in respect of the Convertible Bonds will be fully cancelled.

About Grand City Properties
Grand City Properties (ISIN: LU0775917882) focuses on investing in residential property in Germany, especially in large urban high-density areas. The Company follows primarily a buy and hold strategy. Efficient management tools enable sustainable and targeted improvement of the real estate. The company's portfolio comprises approximately 18,000 units with lettable space in excess of 1.3m sqm, including recent acquisitions. In the first half year of 2013, Grand City posted a net profit of EUR 58m (EUR 36.7m at the end of June 30, 2012 and EUR 93m for the full year 2012). Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange in the stock market segment Entry Standard. Further information: www.grandcityproperties.com.

Press Contact:
Dariusch Manssuri
IR.on AG
T: +49 (0) 221 9140 975
E: [email protected]

Contact:
Kathrin Behlau
Grand City Properties S.A.
T: +49 (30) 887088183
E: [email protected]
www.grandcityproperties.com

Disclaimer
This press release does not constitute an offer to sell or an invitation to make a bid for the purchase or subscription of bonds of Grand City Properties S.A. The offer of bonds of Grand City Properties S.A. must be made exclusively on the basis of the securities prospectus approved by the Luxembourg Financial Supervisory Authority (CSSF), which has been published at www.grandcityproperties.com/bond. This press release does not constitute an offer to sell securities in the United States of America, Canada, Australia, Japan or other jurisdictions in which an offer is subject to statutory restrictions. The securities mentioned in this press release may not be offered or sold in the United States or to US persons (as defined in Regulation S under the Securities Act of 1933 as amended from time to time (the 'Securities Act')) unless they have previously been registered or, if they have not previously been registered, only based on an exceptional regulation. Subject to certain exceptions pursuant to the Securities Act, the securities mentioned in this press release may not be offered or sold in Australia, Canada or Japan or to, or for the account of, Australian, Canadian or Japanese residents. The offer or the sale of the securities mentioned in this press release will not be registered in Canada, Australia and Japan in accordance with the respective legal provisions in these countries. It is not intended to make a public offer of securities in the United States.