Portfolio financing

Fund / Portfolio financing

The Arcona Property Fund is financed by a combination of equity and third-party debt.

As at 20 Febraury 2018 the ratios were as follows:
 
Equity capital € 42.25 million
Bank lending € 36.00 million
Convertible Bonds       4.57 million
Seller loan € 4.7 million
Loan € 2.0 million

The loan to value ratio of the entire portfolio (including convertible bonds and seller loan) is currently 52.4%.

Equity capital

The equity capital comprises 3,165,149 shares with a total nominal value of € 42.25 million. The equity capital reflects an intrinsic value per share of € 13.35 as at 29 December 2017.

Bank financing

The Arcona Property Fund has debt arrangements with three regional banks, in Poland, Czech Republic and Slovakia.

The outline terms of these financing arrangements are as follows: 

Poland

Bank                     Raiffeisen Bank Polska S.A.
Amount  10.1 million
Term to November 2021

Interest rate

1-month EURIBOR + 3.25% 

 

Bank                     DNB Bank Polska S.A. 
Amount € 6.08 million
Term 30 November 2019

Interest rate

3-month EURIBOR + 3% 

Czech Republic

Bank                     Sberbank
Amount € 7.5 million
Term 31 March 2019

Interest

6-month PRIBOR + 2,70% 

Slovakia

Bank                     Slovenska Sporitelna
Amount € 11.5 million
Term 30 june 2021

Interest

3-month EURIBOR + 2.45% 

Convertible Bonds

Since 2014 the Arcona Property Fund has placed three tranches of convertible bonds on the market through private placements. These convertible bonds are not exchange-listed and are not tradeable.

The key terms of each tranche are shown below: 

Key terms Convertible Bond Tranche I 2014

Amount        € 1,070,000
Coupon 6%
term 1 December 2019

Conversion price     

EUR 8.24

 

Key terms Convertible Bond 2016

Amount        € 3,500,000
Coupon 6.5%
Term 31 October 2021

Conversion price     

EUR 8.76

Seller loan

For the purchase of three leasehold shopping centres in Poland the Arcona Property Fund agreed a loan from the seller of the properties.
 

Amount                   € 4.7 million
Coupon 1.0%
Term March 2019

Loan

For the purchase of the Office building "Maris" in Poland the Arcona Property Fund attracted a loan.
 

Amount                 € 2.0 million
Coupon 6.0%
Term 23 December 2018

 

Downloads

Structure Arcona Property Fund N.V.
20 February 2018
Download PDF

The dividend policy for Arcona Property Fund is to pay at least 35% of the annual direct result as a dividend. The target is, within a three to five year time frame from end 2016, to increase annual dividend payments to a level of 8% of the prevailing share price.

Arcona Property Fund counts the following substantial companies amongst its tenants: