LUXEMBOURG - Aroundtown SA, a prominent commercial real estate company, has announced that it will not exercise its option to redeem two sets of perpetual subordinated notes. The decision pertains to the 3.375% Perpetual Notes, with a nominal amount outstanding of €156.3 million, and the 2.875% Perpetual Notes, with €61.8 million nominal outstanding.
The 3.375% notes were subject to an interest rate reset on December 23, 2024, and the 2.875% notes on January 12, 2025. The company had previously conducted exchange and tender offers in May and September 2024, which affected the outstanding amounts of these notes.
Aroundtown's perpetual notes will continue to be treated as 100% equity under International Financial Reporting Standards (IFRS) and for the calculation of the company's financial covenants for its senior bonds.
Aroundtown SA is listed on the Prime Standard of the Frankfurt Stock Exchange and is recognized as the largest and highest-rated (BBB+ by S&P) German commercial real estate company. The firm focuses on income-generating quality properties with value-add potential, primarily in central locations within top tier European cities, with a strong emphasis on Germany and the Netherlands.
This decision not to redeem the perpetual notes is based on a press release statement from the company and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities mentioned have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration.
The announcement was made in accordance with regulatory requirements and is directed only at qualified investors in the European Economic Area, with no public offering of the securities in the United States. The issuer is solely responsible for the content of this announcement.
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