In the 2014 financial year, the repositioning of the Group was completed under the single name “VERIANOS” with the investment and consulting divisions:

• Acquired new properties with around 35,000 sqm of rental space </ li>
• EUR 117 million equity placed with institutional and private investors </ li>
• Three housing projects with 42 residential units completed and handed over to buyers </ li>
• 103 residential and commercial properties provided to buyers </ li>
• 11,200 sqm of office and commercial space leased in own properties </ li>
• First co-investment product “Solingen” successfully completed with investor IRR of 27% </ li>
• Share capital increased by 20% to EUR 9,425 million </ li>
• Positive earnings forecast confirmed </ li>
• Growing project and mandate pipeline for subsequent years built </ li>

Taking advantage of the capital approved at this year’s Annual General Meeting, the share capital of VERIANOS Real Estate Aktiengesellschaft was increased by EUR 845,000.00 to EUR 9,425,000.00 by issuing 845,000 new shares at an issue price of EUR 1.00.

The placement of the new shares took place under exclusion of subscription rights for a small group of international, long-term oriented investors. As part of this capital increase, Dr. Ing. Cristina Zucchetti, Zucchetti Group, exceeded the participation threshold of 5% and now holds 7.5% of the company’s shares. The issue offer was oversubscribed.

The further financing of the planned growth, especially in the area of ​​co-investment, is represented by an accumulation of the desired, positive company results and, if necessary, a borrowing at company level.

As planned, we have in the meantime acquired another co-investment property. This is a building ensemble in Bonn with two residential and office properties each and a total of around 10,000 square meters of rental space. After optimizing and upgrading the properties, a resale is planned within the next 2 to 4 years. VERIANOS has acquired a 30% stake in the acquisition company as a co-investor and acts as sponsor / asset manager.

Two more co-investment acquisitions are planned for the coming year. There are already concrete negotiations on various objects, in some cases already under exclusivity.

Overall, the other projects / mandates in our investment and advisory business areas are developing in line with our expectations.

From today’s perspective, we assume that the targeted positive annual result in the range of EUR 0.1 million to EUR 0.5 million for 2014 will be achieved. This figure already includes the year-on-year decline in the burden of the real square restructuring in the amount of around EUR 0.35 million. As announced at the Annual General Meeting, we are aiming for a target return on sales of at least 20% for the coming year 2015 with further declining and final charges from the real square restructuring.

Together with a small group of family offices and private investors, a portfolio of modern office properties in the state capital of Dusseldorf was acquired. VERIANOS acts as a sponsor, co-investor and asset manager.

The portfolio comprises a total of approx. 17,000 m² of office space. The aim is to increase the value of the portfolio over the next 2-4 years through active asset management and then to return the assets and realize the added value.

Two further co-investment portfolios with a total of approx. 25,000 sqm of rental space are currently under advanced negotiation.