EANS-News: Grand City Properties S.A. / Announcement of capital Increase

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

Luxembourg (euro adhoc) - Grand City Properties S.A.

1st announcement of capital Increase

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. announces capital Increase

The Board of Directors of Grand City Properties S.A. resolved today
to increase company's total share capital from EUR 5,550,000 by up to
EUR 800,000 to up to EUR 6,350,000 through an issue of up to
8,000,000 new ordinary shares with a par value of EUR 0,10 each,
against cash contributions, by exercising the authorized capital of
the Company. The new shares carry dividend rights from 16 December
2011. The issue price for the new shares was fixed at EUR 4.46.
Subscription rights of existing shareholders were excluded. An
investment bank will offer the new shares to institutional investors
in Germany and elsewhere in Europe by means of a private placement.
The Board of Directors will specify the number of shares to be placed
by separate resolution. The Company intends to use the net proceeds
from the capital increase for the funding of new acquisitions of real
estate property portfolios as part of its growth strategy.

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 SHARES.

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 David Netzer
Tel.: 004930887088168/004930887088192
E-Mail: david.netzer@grandcity.lu

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