Berlin – Terragarda GmbH announced that its Corporate covered bonds have been admitted for listing and trading on the Vienna Stock Exchange’s MTF Market (“Vienna MTF”) effective 26 May 2022, with clearing and settlement enabled in Euroclear. Eurivex acted as the Listing Agent and Corporate advisor to the Issuer.
Terragarda https://terragarda.net is a company incorporated and active in Germany with registration number HRB 232466B, involved in the planning, development and implementation of real estate projects in Germany and other countries as well as the provision of real estate management and technical services.
The Company also invests in Private Equity (PE) deals with the objective to realise the implementation of various industry projects, including but not limited to medical and entertainment areas.
Terragarda issued and listed 110,000 Covered Bonds of €1,000 nominal value each for a total value of €110 mln, with date of issue 4 April 2022 and maturity 30 April 2029 paying a fixed coupon of 4.25% per annum, semi-annually in April and October, with ISIN IE000RYAUT27. Eurivex, the EU investment firm https://www.eurivex.com/ acted as listing agent and corporate advisor.
“Terragarda has pledged two of its property holdings in Germany worth €111,75 mln as security to develop the “Proton Therapy Centre” project (“PTCB”) made up of a state-of-the-art cancer treatment therapy centre and an adjacent hotel,” said Terragarda Founder and Managing Director Mr. Andreas Loizou.
The Therapy Centre will cover an area of 100,000 sq. metres and will be constructed in several stages while the adjacent Hotel project will cover an area of 120,000 sq. metres, added Loizou.
Use of issuing proceeds
The use of proceeds from the issue will be as follows:
From the total €110 mln fund raise, the Proton Therapy Centre will absorb 45% of the total or €49,5 mln. Once the licensing and permits are secured within maximum 22 months, the Issuer will commence the construction phase, which is expected to commence in April 2024.
Each therapy room is estimated to cost €25 mln to construct and equip. Terragarda will start with two units. The construction time and the period when the equipment will be delivered and installed is expected to take about 12 months, which means both units of the Therapy Centre will be operational from April 2025.
Terragarda believes that it will be eligible for national and EU funding grants, but such assistance has not been included in the overall projections or use of funds. When such funds are received, they will be used to expand and add to the project.
From the total €110 mln fund raise, the Proton Hotel will absorb 30% of the total or €33 mln. Once the licensing and permits are secured within maximum 22 months, the Issuer will commence the construction phase, which is expected to commence in April 2024.
The construction time and the period when the hotel will be fully equipped is expected to take about 12 months, which means the hotel project will be operational from April 2025.
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