Acron issues bond for US residential project
To finance a new project in its US Senior Living investment series, Acron is issuing a bond with a coupon of 6%.
The subordinated bond Acron Sun City Senior Living Bond has a maximum term of seven years and is aimed at high net worth individuals in Switzerland and the EU, Acron says. The minimum investment amount is 150,000 U.S. dollars; as interest rate Acron 6% p.a. fixed in prospect. After the sale of the finished real estate, presumably after three to four years, the bond is to be repaid.
The proceeds of the issue, in addition to equity provided by qualified investors, will be used for this purpose, to create The Hacienda at Georgetown senior living property near Austin, Texas. According to Arcon, the total investment volume of the new development is $85.6 million, of which 24.5 million will be offered to investors for participation. The issue volume of the bond is a maximum of 12.25 million.
The Hacienda at Georgetown will comprise 230 residential units; the complex is being built opposite the well-known Del Webb community Sun City and, according to Acron, is aimed at a financially strong target group. The proportion of so-called independent-living units, i.e. apartments without direct assistance or care, is to be 125. For the so-called Assisted Living 81 units are planned and for "Memory Care" 24 units. Acron adds that it has already received 160 inquiries from future residents. Construction is scheduled to begin in the second half of 2020.
The Hacienda at Georgetown is the real estate company's third senior living project in the United States. A senior living community in Texas has been operational since early last year, and construction on the second project, Oklahoma University, began in April 2020, the company said. (ah)
