Swiss Prime Site carries out capital increase
Swiss Prime Site is increasing its capital by up to CHF 330 million to finance further growth. The proceeds from the issue will be used primarily to realize projects in the approximately two billion CHF development pipeline.
Up to around 4.67 million new registered shares with a nominal value of CHF 15.30 each are to be issued, Swiss Prime Site (SPS) announced. Shareholders will be granted subscription rights to each registered share after the close of trading on September 17, with the exercise of 16 subscription rights entitling the holder to acquire one new registered share. The subscription price has been set at CHF 74.00 per new registered share. The net asset value of the SPS share (after deferred taxes) was CHF 65.25 as of June 30, 2018. If all subscription rights are exercised, Swiss Prime Site will generate gross proceeds of CHF 331 million from the issue.
A syndicate of banks will offer the new registered shares to existing Swiss Prime Site shareholders for subscription as part of the rights offering from September 18 to 26, 2018, the statement added. Between September 18 and 24, the subscription rights can be traded on the SIX Swiss Exchange. Registered shares not subscribed for through the exercise of subscription rights may be placed or sold by Swiss Prime Site and the banking syndicate on or about September 27, 2018. The new registered shares shall be traded for the first time on 28 September 2018.
Upon completion of the transaction, up to 75.95 million fully paid registered shares with a nominal value of CHF 15.30 each will have been issued, Swiss Prime Site said. The proceeds of around 330 million, which the real estate company expects to receive, will primarily be used to finance the realization of the development pipeline of commercial properties in Switzerland. It will also be used to expand the investment portfolio "with high-quality properties in prime locations," according to the company.
Swiss Prime Site has been listed on the SIX Swiss Exchange since 2000. Its market capitalization is estimated at over 6.5 billion and its real estate portfolio at around eleven billion (as of June 30, 2018). In addition to Swiss Prime Site Immobilien AG, the Group also includes the department store "Jelmoli - The House of Brands", the real estate service provider Wincasa, the residential and nursing home operator Tertianum, and the asset manager Swiss Prime Site Solutions. (ah)
