Urbanek Real Estate issues 10% bond with monthly interest payments to finance residential real estate in Vienna

• Subscription period starts today

• Term of 7 years

• Volume of up to EUR 50 million

Vienna, November 26, 2024 - Urbanek Real Estate GmbH, a Vienna-based real estate company, is issuing a fixed-rate corporate bond (WKN: A3L5QU, ISIN: DE000A3L5QU1) with a volume of up to EUR 50 million. The nominal interest rate is 10.00% p.a. with a 7-year term until February 2, 2032 and interest payments are made monthly. The bearer bonds have a nominal value of EUR 1,000.00 each. The subscription period for the public offer in Germany and Austria starts today on November 26, 2024. Subscription applications are possible via the company's website (www.urbanek.wien).

The bonds are expected to be listed on the Vienna MTF of the Vienna Stock Exchange and the Open Market (Quotation Board) of the Frankfurt Stock Exchange from February 3, 2025.

The Urbanek Real Estate GmbH bond, also known as the “Vienna Opportunities Bond”, offers the opportunity to benefit from the growing Viennese residential real estate market.

The net proceeds from the bond issue will be used to build up a diversified portfolio of existing properties. The plan is to acquire, among other things, eight already identified apartment buildings in Vienna, which will generate immediate cash flow.

The business model involves acquiring high-quality, undervalued existing residential properties. If necessary, the buildings are brought up to the latest possible standards in terms of environmental compatibility and energy efficiency through comprehensive and sustainable refurbishment. They are then certified in accordance with regional, national or international standards. Through this ecologically sustainable management, which is based on the optimization of existing properties and aims to use as many natural resources as possible, the company contributes to the conservation of resources and the reduction of soil sealing through new construction projects.

In future, the company will finance its activities primarily through rental income and proceeds from the purchase and sale of existing properties.

Dr. Christoph Urbanek, Managing Director of Urbanek Real Estate GmbH: “Vienna is and remains the most liveable city in the world. The Austrian capital has topped the Economist Intelligence Unit's annual ranking for years. Vienna's residential real estate market is currently in an exciting phase. The demand for rental apartments and thus also rental prices per square meter have risen steadily over the last 18 months, both in Vienna and in the other provincial capitals of Austria. Demand has increasingly shifted from the purchase market to the rental market.

However, rising interest rates and construction costs have put many real estate companies under pressure. These developments offer well-connected investors like us the opportunity to acquire interesting properties on favorable terms. We currently have regular access to exclusive offers from our extensive network of banks, real estate companies and insolvency administrators, and unique investment opportunities are available. In view of falling interest rates, we expect the market to recover in the medium term and real estate prices to rise again - a development from which Urbanek Real Estate GmbH would like to benefit.

The focus is on the acquisition of high-quality but undervalued residential properties with immediate cash flow. Optimization, for example through structural measures, refurbishment, parification or optimization of the tenant structure, is also intended to generate continuous value growth with stable long-term returns. Particularly at the beginning of the implementation of this strategy, existing properties are to be purchased where there is no need for refurbishment and which therefore generate immediate cash flows for us.

If necessary, we plan to carry out extensive thermal refurbishment of the acquired investment properties in line with a sustainable and responsible corporate culture. We also plan to use energy-efficient heating systems such as heat pumps, connect to district heating systems and install solar systems to generate some of the electricity required by the buildings.”

Service:
An EU Growth Prospectus was prepared for the public offering in accordance with the Prospectus Regulation, approved by the Luxembourg Securities and Markets Authority (Commission de Surveillance du Secteur Financier - “CSSF”) and notified to the Austrian Financial Market Authority (FMA) and the German Federal Financial Supervisory Authority (BaFin). The prospectus is published on the company's website at www.urbanek.wien/wertpapierprospekt and on the website of the Luxembourg Stock Exchange at www.luxse.com.

Disclaimer:
This document is an advertisement within the meaning of Regulation (EU) 2017/1129 (“Prospectus Regulation”) and Delegated Regulation (EU) 2019/979, as amended, and the information contained herein does not constitute an offer to sell or a solicitation of an offer to buy or subscribe for any securities of Urbanek Real Estate GmbH (“Issuer”) and shall not be construed as such. The information contained herein may not be distributed outside of Austria, Germany and Luxembourg and, in particular, is not for publication or distribution, directly or indirectly, in or into the United States of America, Australia, Canada, Japan or the United Kingdom of Great Britain and Northern Ireland. In particular, this document (and the information contained herein) does not contain or constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States, Australia, Canada or Japan or the United Kingdom of Great Britain and Northern Ireland or in any other jurisdiction in which such offer or solicitation is unlawful. Offers of partial debentures of the corporate bond of Urbanek Real Estate GmbH requiring a prospectus are made exclusively in Austria, Germany and Luxembourg (“Offer”) to investors resident there on the basis of a securities prospectus prepared in accordance with the Prospectus Regulation (including any supplements), which was approved by the Luxembourg Commission de Surveillance du Secteur Financier (“CSSF”) on 21. 11.2024, published in the intended manner and notified to the Federal Financial Supervisory Authority in the Federal Republic of Germany and the Austrian Financial Market Authority (FMA) in the Republic of Austria (together the “Prospectus”). The approval of the prospectus is not to be understood as an endorsement of the offered partial debentures of the corporate bond of Urbanek Real Estate GmbH. Following its approval, the prospectus has been published in electronic form on the website of the issuer at https://urbanek.wien/anleihe and is available free of charge at the registered office of the issuer, Spiegelgasse 21, 1010 Vienna. In connection with the offer, only the information in the prospectus is binding; the information in this publication is non-binding. Investors should therefore familiarize themselves with the content of the prospectus before making their investment decision, in particular with the information on risks and taxes, and seek detailed professional advice, taking into account their personal financial and investment situation. Investors are therefore advised to read the prospectus before making an investment decision in order to fully understand the potential risks and opportunities of the decision to invest in the partial debentures of the Urbanek Real Estate GmbH corporate bond. An investment in securities is subject to risks. Investors bear the credit risk of the issuer. In the event of insolvency and/or liquidation of the issuer, the amounts payable on interest and/or capital may be lower; a total loss of the capital invested is also possible in such cases.