Real estate developer Qualis Properties listed its first bond issue on Bucharest Stock Exchange

Real estate developer Qualis Properties listed its first bond issue on Bucharest Stock Exchange on the Multilateral Trading System (MTS). The bonds are traded, as of April 9, under the ticker QUAL24E.

Radu Hanga, Chairman of the Board, BVB: ”Qualis Properties’ round of financing carried out on the capital market shows that investors are willing to invest their money in companies operating in areas with growth prospects. In the last two and a half years, we have demonstrated that the stock market is a viable financing channel, as evidenced by the 45 listed bond issues, with a value of over 2.4 billion euros, but also the 10 newly listed companies, whose capitalization is almost 200 million euros”.

Dragos Tigau, General Manager, Qualis Properties: ”We are pleased with the investors’ confidence and the fact that they responded promptly to our need for financing and, thus, we early closed the bond issue. This round of financing contributes to strengthening our operations for the acquisition of new land, expansion into other niches and market segments. We already have two residential projects underway in Brasov and the customers’ appetite is growing, therefore the company has entered a new stage of development. The most urgent investment has become for Qualis the purchase of new land, we have already identified some opportunities and we have taken the first steps in this direction. We will launch a premium project this year, in a central area of Brasov”.

Qualis Properties carried out a private placement through which it attracted almost EUR 2.1mn, by selling 3-yrs maturity bonds and a fixed interest of 9% p.a., payable on a quarterly basis. The 20,937 bonds have a face value of EUR 100/ bond and they were bought by 51 investors, out of which 49 individuals and 2 legal entities.

Through the issue of corporate bonds, the Issuer intends to make an investment by purchasing a plot of land worth EUR 5.3mn, where it intends to carry out a premium project with 700 apartments and 13,000 square meters of commercial space. The deadline for starting the project is August 2021 and the deadline for completing the project is December 2024 (the project includes 9 blocks). Qualis Properties estimates that the market value of the project will be approximately EUR 70mn.

The company has been developing residential projects since 2017, in areas with a good development dynamic in Brasov, and the residential projects have been carried out in stages. Currently, Qualis Properties has two residential projects underway in the Tractorul neighborhood, in Brasov, with a cumulative market value of EUR 54mn.