Grand City Properties: EUR 100 million bond successfully placed

Luxemburg / Berlin, July 19, 2013 - Grand City Properties S.A., a specialist for residential properties with high value creation potential in urban growth regions, will complete, as planned, the step-up of its corporate bond (WKN A1HNBM) in an amount of EUR 100 million at 2 pm today. The issue is already over-subscribed. Together with the successful first tranche of the bond placed in June 2013 the company has raised a total of EUR 200 million. The secured corporate bond carries a coupon of 6.25% p.a. and has a term of 7 years with interest paid semi-annually. Trading on the Frankfurt Stock Exchange (Entry Standard) is intended to commence on July 24, 2013.

Christian Windfuhr, member of the Advisory Board of Grand City Properties S.A., commented: 'We are grateful for the confidence placed in us and will now move forward with working through our well-filled pipeline.' The proceeds from the issue will essentially be used to expand the existing Grand City Properties portfolio. Including the most recently signed agreements, the portfolio currently comprises some 16,000 units - compared to 11,657 at year-end 2012 - with lettable space in excess of 1.1 million square metres primarily in Berlin as well as in North Rhine-Westphalia. Besides these core markets, the company is focusing currently on residential properties in cities such as Nuremberg, Dresden, Mannheim and Bremen. Management sees excellent purchasing opportunities for residential properties with high value creation potential.

The issue was supported by quirin bank AG acting as lead manager and bookrunner.

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 management of real estate. The company valorize the objects through targeted modernization and runs an intensive tenant management. The company's portfolio comprises some 16,000 residential units including signed pipeline deals with lettable space in excess of 1.1 million square metres. In 2012, Grand City Properties has posted an EBITDA of 122 million euros and a net profit of 93 million euros. 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/anleihe. 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.