Not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada or Japan or any other jurisdiction in which the distribution or release would be unlawful.
 

• 3,499,999 new shares have been placed at a placement price of EUR 28.50 per share, resulting in gross proceeds of approximately EUR 100 million
• Proceeds to be used for continued growth by acquiring further residential portfolios in Berlin in line with its strategy

Berlin, 20 April 2016: ADO Properties S.A. ("ADO Properties" or the "Company") has placed 3,499,999 new shares with institutional investors at EUR 28.50 per share by means of an accelerated bookbuild offering. The gross proceeds resulting from the transaction amount to approximately EUR 100 million. The Company intends to use the net proceeds to finance the acquisition of further residential portfolios in Berlin, thereby continuing its successful growth in line with its strategy, and for general corporate purposes. Post transaction, ADO Group Limited will retain its 37.0 percent shareholding in the Company.

The new shares are entitled to full dividend in respect of any dividend declarations by the Company after the date of issue of the new shares. The new shares are expected to be submitted to trading on 22 April 2016, without the publication of a securities prospectus, and will be included in the existing quotation on the sub-segment of the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange. Settlement of the transaction is expected to take place on 25 April 2016.

CEO Rabin Savion: "We are very pleased with the strong support from our existing shareholders in this capital increase and warmly welcome our new investors in ADO Properties, the only listed pure play Berlin residential real estate company. We will continue to focus on the Berlin residential market and creating strong like-for-like growth, with high returns from targeted capex investments and privatisations.

In the last nine months since our IPO, we have acquired additional residential properties in Berlin for approximately EUR220 million. Following our equity issue and in combination with our existing cash we have now the necessary resources to continue our growth path and can acquire up to EUR300 million in additional properties before reaching our maximum leverage target of 50%."

Chairman Moshe Lahmani and Vice-Chairman Shlomo Zohar: "We continue to be very positive on the long-term growth perspective of the Berlin residential market and are fully supportive of ADO Properties' corporate strategy and growth plans."

Kempen & Co N.V. acted as Sole Global Coordinator and Sole Bookrunner for the Placement. Arbireo Capital is acting as independent financial adviser to the Company.

About ADO Properties

ADO Properties is a Luxembourg-incorporated residential real estate company with its operations purely in Berlin and with 14,856 residential units at year-end 2015. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees and neighborhoods. The portfolio of ADO Properties is focused on central locations in Berlin and attractive districts at the city's outskirts.

Disclaimer

This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United States, Australia, Canada, Japan or in any jurisdiction to whom or in which such offer or solicitation is unlawful.

This release is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Any public offering of securities to be made in the United States of America would be made by means of a prospectus that could be obtained from the Company and would contain detailed information about the Company and management, as well as financial statements. There will be no public offer of securities in the United States of America.

The securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.