Capital Park raises EUR24m via public bond issue
The Capital Park Group, an investment firm operating in the property market in Poland, majority owned by Patron Capital Partners, has held a public bond issue in the Polish market raising EUR23.6m (PLN100m) from Polish institutional and private investors.
Demand significantly exceeded the number of bonds on offer with over 180 per cent of interest in the bonds.
Noble Securities acted as authorised adviser.
Capital Park intends to introduce the bonds to trading on the Catalyst market, which is a debt instrument market operated by the Warsaw Stock Exchange, and the BondSpot market, which has been growing strongly since its inception in September 2009.
Capital Park will use at least 60 per cent of the proceeds to finance the construction of the Eurocentrum Office Complex project, one of the largest sustainable, eco-friendly office buildings currently under construction in Poland, suited to the needs of both employers and employees. Preliminaries have been completed and construction is underway with completion scheduled for 2014 and the first lease agreements already signed. Cushman & Wakefield is the authorised letting agent.
The balance of the proceeds will be used to finance several other projects in the group’s portfolio, which primarily consist of a range of Polish office and retail property assets.
Keith M. Breslauer, founder and managing director of Patron Capital, says: “Capital Park is active in the Polish property market, which is one of the largest in Europe and enjoys strong growth prospects. Operating as both a developer and an investment company, Capital Park acquires property of various types with potential for value growth, and now boasts a portfolio comprising 70 attractive assets. This unique business model, robust project portfolio and stable financial standing have been recognised by investors, which allowed us to obtain financing, which was significantly oversubscribed, for one of the largest and most interesting office buildings currently under construction in Poland.”
Jan Motz, president of the Capital Park management board, says: “We are very pleased with the level of demand for Capital Park bonds, which in our opinion demonstrates that investors have recognised the robust financial standing of the company and its attractive project portfolio. Capital Park’s debt ratio (LTV) is at approximately 30 per cent and, at the end of 2011, we had over PLN35m in cash. Our solid financial standing, coupled with our belief that the Polish market will continue to grow in the next few years means that Capital Park has become synonymous with quality investment opportunities in the Polish real estate market.”
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