New Hanza Capital Demonstrates Financial Performance Growth

Riga, Latvia, November 21, 2017, 14:10 / Investments

Within nine months of 2017, New Hanza Capital was working at a profit of EUR 173 445, which is by 512% more in comparison to the same period of 2016. It can be explained with the increase in earnings from renting the properties managed by the company, and increase of investment properties portfolio.

Unaudited financial indicators:

  • Company’s earnings in the nine months of 2017 constitute EUR 893 666. In comparison with the nine months of 2016, they have grown by 290%;
  • EBITDA (earnings before interest, taxes, depreciation, and amortisation, and fixed asset impairment) constitutes EUR 332 211 as at 30 September 2017;
  • In the nine months of 2017, FFO (profit after taxes + depreciation + amortisation – earnings from property sale + deferred tax) reached EUR 169 176.

As one of the key events of Q3, it could be mentioned that in cooperation with one of Germany’s leading alternative investment fund management service providers IntReal, New Hanza Capital Fund 2017, an alternative real estate investment fund, was established in September 2017. The fund will focus on the acquisition of commercial real estate in Germany — on cash flow generating office assets. Upon commencement of its operations, the fund has attracted an initial capital commitment in the amount of EUR 60 million.

The manager of the alternative real estate investment fund “New Hanza Capital Fund 2017” is IntReal that focuses exclusively on the issuance and administration of property funds. The acquisition and management of the assets of this fund shall be provided by New Hanza Capital, AS in accordance with the cooperation agreement.

During the reporting period, New Hanza Capital has also performed a bond issue in order to attract additional funds for its operative needs. The total size of the bond issue is EUR 10 million. In the New Hanza Capital bond issue, ABLV Bank has been the arranger of the issue ensuring the necessary documents for it, as well as performing the initial placement of the bonds. The public offer was closed on 6 October 2017 and during the offer there were applications received for a sum almost twice as big as the issue size. On 19 October 2017, the bonds were admitted to Nasdaq Riga regulated market – the Baltic Bond List of Nasdaq Riga.

Following the company’s operation objectives, in September New Hanza Capital, AS added to its real estate portfolio office buildings located in the territory of the former State Electrotechnical Factory (VEF), where a new business, culture, leisure and creativity zone has developed. The office buildings in Riga on 214B Brīvības gatve, 214M Brīvības gatve and 1a Bērzaunes Street were purchased by NHC 2, SIA, the subsidiary of New Hanza Capital, AS, from Salvus 6, SIA, the subsidiary of DNB Banka. The total amount of the transaction reached EUR 8.46 million. The total floor space of the purchased offices amounts up to 25,000 m2. Among the biggest tenants, there are such companies like Intrum Justitia Software Development Centre, SIA and Accenture Latvian Branch.

This announcement contains inside information.

New Hanza Capital, AS is a company founded in 2006. The objectives of its operation includes investing own and third party funds in commercial real estate objects to achieve sustainable increase in income from renting the premises, long-term capital growth and enlarging of the value of properties. The biggest shareholder of New Hanza Capital, AS is ABLV Bank AS, owning 88% of the company’s shares. The company’s real estate portfolio includes airBaltic central office at Riga International Airport, logistics centre in Ķekava Region and other objects. Total area of premises let out exceeds 31 thousand sq. m.