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Jersey, 22 January 2007. Meinl European Land looks back at a very
successful year 2006 and starts 2007 with another burst of growth.
Since year end 2006 real estate projects with a total investment
volume of approx. EUR 900 million have been contractually agreed.
Further projects totalling EUR 1 billion are expected to be signed in
the very near future.
Capital increase will generate EUR 1.48 billion for new acquired
projects To fund its extensive investment program, Meinl European
Land is intiating a capital increase: Between 22 January and 9
February 2007, Austrian and international investors are being given
the opportunity to acquire 75 million new shares at a subscription
price of EUR 19.70 per share. This 1 for 5 rights issue is the
largest capital increase in the Companys history. Trading of
subscription rights will take place on 1, 2 and 5 February 2007. At
current market price, this will bring Meinl European Lands market
capitalisation to almost EUR 6 billion. Through the share issue the
Company will have become one of Europes largest real estate
companies in terms of market capitalization. The capital increase,
which will generate gross proceeds of EUR 1.48 billion, in line with
Meinl European Lands principles to secure financing for new projects
very close to the outset, while never holding more liquidity than
needed for specific, planned projects.
Portfolio expanded to EUR 4.5 billion - steadily increasing deal flow
Following the latest acquisitions Meinl European Lands property
portfolio has risen to EUR 4.5 billion as of today. This consists of
153 completed properties with a total value in excess of EUR 1.4
billion and 36 contracted development projects with a total
investment value of EUR 3.1 billion scheduled for completion between
2007 and 2009. Annual rental income for the total portfolio is
estimated at EUR 450-500 billion once all development projects are
completed, corresponding to a yield of approx. 11%.
The addition of some EUR 1 billion worth of further projects -
currently at an advanced stage of the due diligence process and
planned to be signed very soon - will swell the real estate portfolio
to EUR 5.5 billion.
First projects signed in Bulgaria and Ukraine Meinl European Land
has recently begun work on its first development project in Bulgaria.
The EUR 185 million project is a 80,000 sqm shopping centre on an 18
hectare site on the southern edge of Sofia with a direct link to the
southbound freeway. Completion is scheduled for year end 2009.
The Company has also acquired its first project in Ukraine: a 60,000
sqm shopping centre will be built in Odessa, a city of over a million
inhabitants, at a total cost of around EUR 150 million. The
forecasted yield for the shopping centre, scheduled for completion by
the end of 2008, is slightly over 12%.
Second shopping centre in Rostov-on-Don In the southern Russian city
of Rostov-on-Don Meinl European Land has just recently signed
agreements for its second shopping centre. The 60,000 sqm shopping
centre will be built slightly outside the city centre. Investment
costs are estimated at approx. EUR 80 million. Expected anchor
tenants are the German Metro Group with a Real hypermarket and OBI
with a DIY centre. The shopping centre is scheduled to open in 2009
with an estimated yield of 15%. The strategy to secure a market
position in a specific region on a long term basis by developing two
complementary shopping centres in the same city has been successfully
adopted in other cities already.
60,000 sqm shopping centre in Ryazan yielding 16% In Russia, the
Company is constructing a further shopping centre in Ryazan, a city
of 500,000 people in the Moscow region. The development costs for
this project are forecasted at approx. EUR 70 million with a rental
yield of 16%. The centre is scheduled to open in 2009.
Huge shopping centre near Moscow In Pushkino, a northern suburb of
Moscow, Meinl European Land will develop a huge shopping centre
including a retail park. The multi-phase project will ultimately
comprise a total lettable area of up to 250,000 sqm. Preliminary
agreements were signed a few days ago. The total cost of the project
- which has similarities with Europes largest shopping centre, SCS
in Vienna, both in terms of scale and structure - will amount to
around EUR 300 million. The yield is estimated at 15%. Metro Group,
with whom Meinl European Land has close ties particularly in Russia,
is again expected to be the anchor tenant.
Continued growth in Poland shopping centres in Kalisz and Gdansk
Expansion is also the order of the day in Poland: Meinl European Land
is developing a shopping centre on a land plot of 11 hectare in
Kalisz. The city lies 250 km west of Warsaw and has a catchment area
of 450,000 people. The shopping centre will be one of the largest in
the region with a total investment cost of EUR 45 million. Anchor
tenant will be the British retailer Tesco.
At the end of 2006 Meinl European Land acquired a shopping centre
project in Gdansk, near the former Lenin shipyard, which became
famous during the strikes of the 1980s. The total investment for the
50,000 sqm shopping centre scheduled to open towards the end of 2009
amounts to roughly EUR 100 million.
Urban redevelopment projects being assessed In the medium term, the
Gdansk development project is not confined to the mentioned shopping
centre alone. The city of Gdansk is planning to breathe new life into
this once thriving district. In addition to the shopping centre,
plans call for construction and refurbishment of hotel, office and
residential buildings together with various leisure facilities, so as
to create an attractive new city centre for business and leisure
Revitalising an entire district is extremely appealing, but also
challenging. It calls for extensive know-how and a many years of
experience in real estate development projects. On the other hand,
such projects offer developers opportunities for extremely attractive
Meinl European Land is currently engaged in negotiations with
representatives of two major Russian cities on similar urban
development projects. Apart from a major shopping centre, such urban
development projects may also include office and residential
buildings as well as hotels. The yield for such projects with an
investment value of up to EUR 700 million per project is estimated at
over 20%. Developing such a large area may well take 4 - 6 years.
After an assessment and preparation of an appropriate concept, first
urban developments could begin within a relatively short period of
Focus will remain on retail properties Such urban redevelopments
enables Meinl European Land to secure prime locations for shopping
centres. Furthermore, it is an excellent chance to increase its
earnings significantly. Meinl European Lands long-term investment
focus will continue to be on retail properties, however. Although
involvement in urban development projects is highly likely to form
part of the Companys future activities, in the long term Meinl
European Land intends to retain in its portfolio only the retail
properties within such projects. Any residential, office and hotel
properties will be disposed of.
A further EUR 1.9 billion in the project pipeline The large number
of contracted new projects mentioned above does not by any means
signal the end of Meinl European Lands expansion drive. Within its
pipeline the Company currently is reviewing specific projects with a
total investment value of approx. EUR 1.9 billion. Hence, Meinl
European Lands continuing growth is assured.
end of announcement euro adhoc 22.01.2007 13:11:39
ots Originaltext: Meinl European Land Limited
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Branche: Real Estate
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