Branicks Group AG: Clear strategy for sustainable stability of the company

Branicks Group AG: Clear strategy for sustainable stability of the company

• Management Board has presented convincing corporate planning
• Broad approval of creditors for financial concept
• Promissory note loans and bridge financing extended
• Change in the chairmanship of the Supervisory Board intended
• Focus on operating business and value generation of the company

Frankfurt, 26.03.2024 – Branicks Group AG (Branicks), ISIN: DE000A1X3XX4, has today set the course for a sustainably stable future for the company.

Two points are decisive here. On the one hand, the lenders of the promissory note loans amounting to EUR 225 million, which will mature in 2024, voted with 96% in favour of the company’s restructuring plan. In doing so, the promissory note loans in question are extended to June 30, 2025.

On the other hand, with the lenders of the bridge financing for the acquisition of the shares in VIB Vermögen AG completed in 2022 an immediate repayment in the amount of EUR 40 million and an extension of the term concerning the remaining EUR 160 million until 31 December 2024 were agreed. The extension is based on almost unchanged conditions.

The agreements are based on the Company’s corporate planning for the period up to the end of 2026, the plausibility of which has been confirmed by an independent business review by FTI-Andersch.

This planning ensures a stable financing of the company and the servicing of all existing financial obligations in the long term. On this basis, the Management Board will once again concentrate fully on its strategy of generating value and increasing efficiency in the operating business and will continue to pursue this consistently.

“Branicks now has a stable foundation for shaping the future of the company. We are pleased that we have the broad support of our creditors. The stabilization of the transaction market gives us additional confidence. We can build on this and now concentrate fully on the operational core of the company again, i.e. on generating value and improving efficiency by focusing the company on high-quality real estate in the office and logistics asset classes”, commented Sonja Wärntges, CEO of Branicks Group AG.   

Agreement reached with creditors of the promissory note loans and bridge financing

The company had previously announced in a mandatory notification that the lenders of the EUR 225 million promissory note loans of Branicks Group AG maturing in 2024 had voted by 96% in favour of the restructuring plan and accepted it at the court discussion and voting meeting in accordance with the German Act on the Stabilisation and Restructuring Framework for Companies (“StaRUG”). The conditions for this were adjusted slightly compared to existing regulations to reflect changed market conditions. The competent district court of Frankfurt am Main subsequently confirmed the restructuring plan in court. As a result, the aim pursued by the Management Board for a uniform extension of the relevant promissory note loans to June 30, 2025, could be achieved.

In addition, an immediate repayment of EUR 40 million was agreed with the lenders of the bridge financing for the acquisition of the shares in VIB Vermögen AG, which was completed in 2022, and an extension of the term for the remaining EUR 160 million until December 31, 2024, with almost unchanged conditions.

Liquidity inflow of EUR 60 million from portfolio transfer to VIB

As part of a share deal, Branicks Group AG additionally transferred today its own portfolio shares of eight properties to VIB Vermögen AG – in which Branicks currently holds around 69% – for a purchase price of around EUR 99 million, resulting in a cash inflow of around EUR 60 million. In recent weeks, Branicks had already reported a series of transactions, new leases and follow-up leases in a gradually improving real estate market. 

Change in the chairmanship of the Supervisory Board intended

The Supervisory Board of Branicks Group AG is expected to elect a new Chairman from among its members by mid-April 2024. The current Chairman of the Supervisory Board, Prof. Dr. Gerhard Schmidt, will continue to be a member of the Supervisory Board and remain Chairman of the Supervisory Boards of VIB Vermögen AG and BBI Bürgerliches Brauhaus Immobilien AG.

Publication of annual and consolidated financial statements on April 30, 2024

As already announced, Branicks Group AG will publish its annual and consolidated financial statements for the 2023 financial year and its 2023 annual report on April 30, 2024.

For more information see Branicks.com.  

PR-Contact Branicks Group AG:

Stephan Heimbach

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1569

pr@branicks.com

IR Contact Branicks Group AG:

Jasmin Dentz

Neue Mainzer Strasse 32-36

D-60311 Frankfurt am Main

Phone +49 69 9454858-1492

ir@branicks.com