DGAP-News

GRAND CITY PROPERTIES S.A. ANNOUNCES SHARE BUYBACK

DGAP-News: Grand City Properties S.A. / Key word(s): Share Buyback/Tender Offer GRAND CITY PROPERTIES S.A. ANNOUNCES SHARE BUYBACK 28.01.2021 / 08:59 The issuer is solely responsible for the content of this announcement. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

GRAND CITY PROPERTIES S.A. ANNOUNCES SHARE BUYBACK

Luxembourg, January 28, 2021 - Grand City Properties S.A. ("GCP" or the "Company") announces that the Board of Directors has resolved to buy back up to 12,500,000 shares of the Company, representing 7.3% of the outstanding number of shares, by way of a public self-tender offer at a purchase price in the range of €20.00 to €21.25 per share. The acceptance period is intended to start on 29 January 2021 and expected to end on 12 February 2021. The share buyback utilizes the authorization provided by the General Annual Meeting (AGM) held on June 24 2020, by which the Board of Directors may acquire up to 20% of the aggregate nominal amount of the issued share capital. Further details on the public self-tender offer will be published in the next days on the Company's website under https://www.grandcityproperties.com/investor-relations/equity/share-bu ....

The Company sees the reinvestment into its shares as a strongly accretive investment, which provides a high and stable return on a per share basis in addition to acquisitions. The share buyback has been launched on the back of GCP's strong operational performance and increasing EPRA NAV per share, while the share is being traded at a discount to EPRA NAV. Furthermore, the Company's recent disposals at a premium to book value, while the share is traded at a discount highlights the disconnection between the value of the underlying business and the capital markets. Therefore, the Company has decided to use the opportunity to create further long-term shareholder value and accretive per share growth through the buyback of its shares at discount. The share buyback is supported by the robust equity base and the high liquidity of the Company and is in-line with GCP's conservative financial policy.