Aroundtown SA Decides Against Voluntarily Calling GBP 400 Million 4.75% Perpetual Notes with June 2024 First Call Date
In an announcement made on May 15, 2024, Aroundtown SA, a prominent commercial real estate company based in Luxembourg, has made a strategic decision regarding its financial instruments. The company’s Board of Directors has declared their choice not to proceed with the voluntary redemption of their GBP 400 million 4.75% undated subordinated notes. These notes, which have a first call date set for June 25, 2024, are identified by ISIN XS2017788592, commonly known as the Perpetuals. Post a successful exchange and tender offer completed in May 2024, the outstanding nominal amount of these Perpetuals stands at GBP20.4 million.
This pivotal decision comes in light of the current market conditions, which have influenced the Board’s stance on the matter. However, it is important to note that Aroundtown retains the flexibility to call the Perpetuals in the future, around any succeeding interest payment dates, thereby leaving the door open for potential early redemption based on evolving market situations.
The continuation of the Perpetuals will be marked under 100% equity in accordance with the International Financial Reporting Standards (IFRS). This accounting treatment also extends to the calculation of financial covenants related to Aroundtown’s senior bonds, ensuring a consistent approach towards the company’s financial structuring.
About Aroundtown SA
Aroundtown SA, bearing the trading symbol AT1, is a prestigious figure in the European commercial real estate sector. The company enjoys a stature of being the largest listed entity in its field within Germany, further distinguished by an S&P rating of BBB+. Focused primarily on income-generating properties, Aroundtown’s portfolio is curated with an eye for value-add potential. Its investment strategy prioritizes central locations across top-tier European cities, with a significant emphasis on properties situated in Germany and the Netherlands.
Aroundtown operates as a public limited liability company, incorporated and governed by the laws of the Grand Duchy of Luxembourg. It holds its registration with the Luxembourg Trade and Companies Register under the number B217868, and its corporate headquarters are located at 37, Boulevard Joseph II, L-1840 Luxembourg, in the Grand Duchy of Luxembourg.
The decision not to redeem the Perpetuals at this juncture highlights Aroundtown’s conscientious approach to navigating the financial markets. It underscores the company’s adaptive financial strategy, aimed at optimizing outcomes for its shareholders while maintaining a robust and strategic investment portfolio in the European real estate market. As Aroundtown continues to monitor market conditions closely, investors and stakeholders can anticipate informed and strategic decisions that support the company’s growth trajectory and financial health.
