EANS-News: Grand City Properties S.A. / Successful Convertible Bond Placement

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Capital measures/Convertible Bonds

Luxembourg (euro adhoc) - THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION
OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE
DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

GRAND CITY PROPERTIES S.A.: Successful Convertible Bond Placement

Luxembourg, 8 October 2012: Grand City Properties S.A. (the
"Company") has successfully completed the placement of convertible
bonds convertible into ordinary shares of the Company (the "Bonds")
in an aggregate principal amount of EUR 100 million.

The Bonds will have a maturity of five years. The initial conversion
price of the Bonds will be EUR 4.00. The coupon of the Bonds has been
set at 8% per annum, payable semi-annually in arrears.

The Bonds were offered to institutional investors in a private
placement in Europe. The closing and settlement is expected to occur
on or around 15 October 2012.

Credit Suisse acted as Sole Bookrunner of the offering.

The Company intends to use the net proceeds from the issue of the
Bonds for the funding of new acquisitions of real estate property
portfolios as part of its growth strategy.

About GRAND CITY PROPERTIES S.A. Grand City Properties S.A. is a
residential property investment company based in Luxembourg which
concentrates on residential investments in Germany.

Forward-looking statements This press release may include
forward-looking statements. Forward-looking statements include, but
are not limited to, statements concerning estimates of expected
capital expenditures and associated costs, statements relating to
estimates of, and increases in, rental income, cash flows and
property market values and other statements which are not historical
facts. When used in this document, the words such as "could," "plan,"
"estimate", "expect", "intend", "may", "potential", "should" and
similar expressions are forward-looking statements. Although Grand
City Properties believes that its expectations reflected in these
forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from
these forward-looking statements include the potential that the
Company's projects will experience problems due to change in market
conditions, that changes in rental prices can have a material impact
and that Grand City Properties fails to raise sufficient capital to
adequately fund its expansion activities.

Contact:
Grand City Properties S.A.
6, boulevard Pierre Dupong
L 1430 Luxemburg

www.grandcityproperties.com

THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR
INDIRECTLY IN OR INTO THE UNITED STATES (AS DEFINED IN REGULATION S
UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT")). THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL SECURITIES OR THE
SOLICITATION OF ANY OFFER TO BUY SECURITIES, NOR SHALL THERE BE ANY
OFFER OF SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SALE
WOULD BE UNLAWFUL. THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE
NOT BEEN AND WILL NOT BE REGISTERED IN THE UNITED STATES UNDER THE
SECURITIES ACT AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
ABSENT REGISTRATION OR EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT. THERE WILL BE NO PUBLIC OFFER OF THE SECURITIES IN
THE UNITED STATES. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO
SELL OR THE SOLICITATION OF AN OFFER TO BUY OR THE SOLICITATION OF AN
OFFER TO BUY ANY CONVERTIBLE BONDS. THIS ANNOUNCEMENT IS DIRECTED AT
AND IS ONLY BEING DISTRIBUTED IN THE UNITED KINGDOM TO (I) PERSONS
WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS
FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS
ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"), (II) HIGH
NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY OTHERWISE
LAWFULLY BE COMMUNICATED FALLING WITHIN ARTICLE 49 OF THE ORDER, AND
(III) PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL
SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS
COMMUNICATION MUST NOT BE READ, ACTED ON OR RELIED ON BY PERSONS WHO
ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO
WHICH THIS ANNOUNCEMENT RELATES IS AVAILABLE ONLY TO RELEVANT PERSONS
AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS. BY READING THIS
ANNOUNCEMENT, THE READER ACKNOWLEDGES THAT IT IS A PERSON EITHER (I)
OUTSIDE THE UNITED KINGDOM OR (II) FALLING WITHIN ONE OF THE
FOREGOING CATEGORIES. IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA
("EEA"), THIS ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS
DIRECTED ONLY AT PERSONS WHO ARE "QUALIFIED INVESTORS" WITHIN THE
MEANING OF ARTICLE 2(1)(E) OF THE DIRECTIVE 2003/71/EC (THE
"PROSPECTUS DIRECTIVE") ("QUALIFIED INVESTORS"). ANY PERSON IN THE
EEA WHO ACQUIRES THE SECURITIES IN ANY OFFER (AN "INVESTOR") OR TO
WHOM ANY OFFER OF THE SECURITIES IS MADE WILL BE DEEMED TO HAVE
REPRESENTED AND AGREED THAT IT IS A QUALIFIED INVESTOR. ANY INVESTOR
WILL ALSO BE DEEMED TO HAVE REPRESENTED AND AGREED THAT ANY
SECURITIES ACQUIRED BY IT IN THE OFFER HAVE NOT BEEN ACQUIRED ON
BEHALF OF PERSONS IN THE EEA OTHER THAN QUALIFIED INVESTORS, NOR HAVE
THE SECURITIES BEEN ACQUIRED WITH A VIEW TO THEIR OFFER OR RESALE IN
THE EEA TO PERSONS WHERE THIS WOULD RESULT IN A REQUIREMENT FOR
PUBLICATION BY THE COMPANY OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF
THE PROSPECTUS DIRECTIVE.

Further inquiry note:
Herr Christian Hupfer
Tel.: 004930887088192
E-Mail: christian.hupfer@grandcityhotels.com

end of announcement euro adhoc
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company: Grand City Properties S.A.
boulevard Pierre Dupong 6
D-L-1430 Luxembourg
phone: 0035226187379
FAX: 0035226187779
WWW: http://www.grandcityproperties.com
sector: Financial & Business Services
ISIN: LU0775917882
indexes: Entry Standard Index
stockmarkets: Open Market: Frankfurt
language: English