Fundamenta Real Estate changes stock exchange

Fundamenta Real Estate has placed approximately 5.9 million new shares at CHF 14.50 each in its latest capital increase, raising net proceeds of approximately CHF 80.44 million. The subscription of the new shares took place in the context of a rights offering, a free placement and a partial firm underwriting by Luzerner Kantonalbank, Fundamenta Real Estate announced. The company also granted Zürcher Kantonalbank, as lead manager, an over-allotment option of 450,000 shares, which can now be exercised until January 4, 2019.

In the run-up to the issue Fundamenta Real Estate had announced, to issue up to around 6.3 million new shares. The net proceeds had been estimated at a maximum of 86.60 million at the time.

Change to the SIX Swiss Exchange

With the capital increase, the Company was also able to complete the switch from the BX Swiss to the SIX Swiss Exchange. Since December 6, 2018, the new as well as the existing shares of the company have been traded on the SIX Swiss Exchange. The first price on Thursday morning was CHF 14.70.

The re-IPO enables the inclusion of Fundamenta shares in the Swiss Performance Index (SPI) as well as in the real estate indices SXI Real Estate Broad, SXI Real Estate Shares Broad and SXI Real Estate All Shares Index, Fundamenta Real Estate announces. Based on the subscription/placement price, the market capitalization will increase to 359.33 million, or to 365.85 million if the over-allotment option is exercised in full.

Portfolio continues to grow

The net proceeds will be used to acquire additional real estate assets, invest in development projects, develop and reposition existing properties and strengthen the balance sheet structure, Fundamenta Real Estate added.

In mid-November, the company acquired a development project in the city of Zurich. A new replacement building with rental apartments is planned with an investment volume of around 25.23 million. On December 4, Fundamenta Real Estate also purchased a residential property in the canton of Zurich with a market value of 40.64 million. The property is to be held in the portfolio for the long term. (ah)