FSA greenlights One United Properties prospectus for share capital increase that targets 70 million euros raise

FSA greenlights One United Properties prospectus for share capital increase that targets 70 million euros raise

BUCHAREST, Romania, Aug. 8, 2024 /PRNewswire/ — One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use, and office real estate, announces the publication of the prospectus for the share capital increase following its approval by the Romanian Financial Supervisory Authority. The Group aims to raise 70 million euros to finance the Company’s next growth phase by issuing 1.750.000.000 new shares.

“Since becoming a public company, we have consistently delivered on the promises made to our investors, with a clear focus on expanding our business. Our successful IPO in 2021 was a pivotal moment that enabled our strategic expansion into the premium residential segment, exemplified by the remarkable success of One Cotroceni Park. Similarly, our office division, which now boasts a 95% lease ratio, has fulfilled our commitment to investors, driven by our belief that Bucharest deserves world-class office spaces to establish itself as a leading European work hub. Today, our construction sites span 12 developments, comprising more than 4,000 residential units and nearly 45,000 sqm of office and commercial spaces. Our vision for the future includes entering the affordable premium housing segment, where we see significant growth potential. The planned share capital increase is the next milestone for this growth, and we invite our esteemed shareholders to participate and increase their investment in One United Properties by approximately 10% of their existing holdings. This capital infusion accelerates our ambitious growth plans, positioning us to double our business within the next five years and potentially quadruple it over the next decade, while maintaining our LTV at a prudent level,” said Victor Capitanu, co-CEO of One United Properties.

The share capital increase operation will be organized in two stages. In the first stage, the shareholders who purchased ONE shares by the date of guaranteed participation, August 2nd, 2024, will be entitled to subscribe the new shares, respecting the preference rights, at the nominal value of 0.2 lei. The preference rights, having symbol ONER03, were loaded in the shareholders’ accounts on August 7th. The preference right will be tradeable on the Main Market of the Bucharest Stock Exchange between August 9th and 13th. Therefore, those who want to subscribe to new shares but do not have any or sufficient preference rights will be able to buy them at the price set in the market.

The first stage of the share capital increase will start on August 19th and will last for 32 calendar days, until September 19th. To subscribe to one new share in stage 1 of the share capital increase at 0.2 lei, an investor must hold 2,1879186 ONER03 preference rights. The shares that remain unsubscribed during the first stage might be offered in a private placement at a price established by the Board of Directors decision, considering the price formed during the bookbuilding process.

60% of the capital intended to be raised by the Company has already been committed by the two co-founders and executive members of the Board of Directors, Victor Capitanu and Andrei Diaconescu, as well as the Chairman of the Board, Claudio Cisullo and Board Member, Marius Diaconu.

The capital raised in the share capital increase operation will be used to expand One United Properties’ addressable market beyond its current residential segment focus of luxury, high-end, and premium developments and will accelerate the development of the affordable premium residential segment, which targets Bucharest’s middle class. The Company has land under negotiation for 10,000 residential units exclusively for this sub-segment, with the first memorandum of understanding for a 21-hectare plot of land that will host 5,000 units already signed.

In the first half of 2024, One United Properties sold and pre-sold 452 apartments and commercial units with a total surface of 43,809 sqm, 624 parking spaces, and other unit types for 123.3 million euros. At the end of May 2024, pre-sales started at the second phase of One Lake District, where 867 units are being built. Consequently, as of June 30th, 2024, 66% of the available units under development and delivered were sold out.

As of June 30th, 2024, One United Properties had in ownership, or under pre-SPA, 285,100 sqm of land locations for further development, with total above-ground gross building rights (GBA) of approximately 988,000 sqm. All these land plots are currently in the planning phase. The Group estimates the construction of 7,000 apartments, services for communities, and 146,000 sqm of rental commercial buildings. Out of the commercial buildings, 121,000 sqm will host offices and the remaining 25,000 sqm are located within buildings that will undergo restoration.

ONE UNITED PROPERTIES (BVB: ONE) is the leading green investor and developer of residential, mixed-use, and commercial real estate in Bucharest, Romania. One United Properties is an innovative company dedicated to accelerating the adoption of construction practices for safe, energy-efficient, sustainable, and healthy buildings, and has received numerous awards and recognitions for its superior sustainability, energy efficiency, and wellness. The Company is publicly traded on the Bucharest Stock Exchange, and its shares are included in multiple indices such as BET, STOXX, MSCI, FTSE, ROTX and CEEplus.

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