One United Properties (BVB: ONE), the leading green investor and developer of residential, mixed-use, and office real estate in Romania, announces the closing of the first stage of the share capital increase operation, having raised 14.4 million euros.
The capital increase operation will continue with the second stage – private placement targeting local and international institutional investors.
“We thank all our investors for their trust at a time when the global markets have been in turmoil, registering significant volatilities. The excellent result of the subscriptions of the existing shareholders, above our initial estimates, confirms the trust that we have managed to build over the years. As we continue the share capital increase operation through a private placement, we reconfirm once again the good prospects for the Romanian real estate sector as well as the existence of unique opportunities in the market today. Despite global challenges, the performance we have thus far recorded in 2022 is proof that both the residential and office segments continue to grow in Romania, and we are on track to deliver the results we promised to our shareholders at the beginning of this year. Moreover, already ahead of the closing of the capital increase, we have managed to seize rare opportunities in the market, expanding our residential portfolio with two new developments where we will build over 1,100 apartments and the commercial portfolio with 12,000 sqm of fully leased quality office space,” stated Victor Căpitanu, co-CEO at One United Properties.
The capital raised in the share capital increase operation will fuel the growth strategy of One United Properties, allowing the company to seize additional opportunities in the market. The new equity will be invested with priority in new residential developments located primarily in Bucharest. The company targets to invest the capital raised in ten new developments. The first agreements, for two locations based in Bucharest, were already signed over the last month. The developments that will be built on those plots are One City Club, located in sector 2 of Bucharest, which will host approximately 200 apartments organized in a low-rise community, as well as One Herastrau City, located in sector 1 of Bucharest, where One United Properties plans to build 900 apartments organized in seven high-rise towers.
In addition to investing in new residential developments, the company also acquired a new office building, One Victoriei Plaza. The new office building has a GLA of 12,000 sqm, and it is fully leased to First Bank for a remaining period of approximately 12 years. The annual rental income generated by the building is approximately 1.9 million euro, and it is indexed with the yearly inflation. With his transaction, One United Properties commercial portfolio will reach GLA of 190,000 sqm by the end of 2022, out of which the office portfolio will amount to 148,000 sqm. The acquisition of One Victoriei Plaza is aligned with the strategy of One United Properties to grow the recurring revenues from the commercial portfolio.
During the first stage, the existing shareholders subscribed to newly issued shares based on ONER01 preference rights. The investors have subscribed 50,021,464 ONE shares. During stage 1 of the share capital increase, the subscription price for a new share was set at a maximum price of 1.42 lei, but the final subscription price for a new share subscribed during stage 1 will be published after the closing of stage 2. In case the final subscription price in stage 1 is set as lower than the maximum subscription price, then the company will return to the investors the difference between the maximum price and the final price.
The first stage of share capital increase, which ran between June 27th and July 27th, was intermediated by BRK Financial Group. For the private placement, One United Properties is working with UniCredit Bank, Raiffeisen Bank and Swiss Capital.
The ongoing share capital increase is the fifth capital raise for One United Properties, which in July 2021 listed on the Main Market of the Bucharest Stock Exchange after having successfully raised 52.8 million euro in an IPO. In the first year since the IPO, investors traded ONE shares amounting to over 73 million euros, placing the company as the ninth most traded issuer between July 2021 and 2022 on the Bucharest Stock Exchange.