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PHN Group Secures PLN 230 Million for New Investments and Debt Refinancing

COMPANIESPHN Group Secures PLN 230 Million for New Investments and Debt Refinancing

The Polish Real Estate Holding (PHN) has managed to secure PLN 230 million from the issuance of corporate bonds. The funds will be used to finance new investments in the office and logistics sectors and to refinance part of the debt.

PHN Group, a leader in the real estate market in Poland with an investment asset portfolio of PLN 3.7 billion, continues to grow dynamically. The publicly traded company has just obtained financing for the development of planned projects in key business segments. In the book-building process completed on Friday, investors submitted subscriptions for unsecured three-year D series bonds worth a total of PLN 230 million. The interest rate was set at the WIBOR 6M index + 3.90% margin. The D series bonds will be listed on the Catalyst stock market, allowing for their market valuation and enabling free trading of bonds.

“Our investors, particularly investment funds, appreciate the projects we have completed that provide attractive returns, and that’s why they want to continue supporting the company’s development through debt financing. The D series bond issuance was a great success, confirmed both by its value and the attractive terms we managed to achieve when selling these papers. The money raised from the issuance will be used to finance new office and logistics investments and for debt refinancing,” said Marcin Mazurek, CEO of Polish Real Estate Holding.

The seven-year bond issuance program with a total nominal value of up to PLN 1 billion was established by the current PHN management in 2019. As part of the program, so far three issues have been placed with a total value of PLN 705 million, which were covered by qualified investors at margins favorable to the company, lower than the market average in the real estate segment.

The money raised from the three bond issues was used, among other things, for the expansion of the office space portfolio by newly built premium-class SKYSAWA and INTRACO Prime buildings, worth approximately PLN 840 million, or the development of logistics projects. The Warsaw office buildings SKYSAWA and INTRACO Prime increased the office area managed by PHN by 48,000 sq. m. to 470,000 sq. m. Their commercialization has unleashed potential for the start of further large investment projects in the office and logistics segments, which are key from the point of view of revenues obtained and considered to be the most promising. The implementation of another office building in Warsaw – VENA, with an area of 15,000 sq. m. and worth PLN 200 million, started at the end of January 2024. An office project – Marina Office in Gdynia (27,500 sq. m. GLA) is being prepared. PHN, together with its industry partner, the American company Hillwood, as part of a joint venture, plans to start the construction of a logistics center near Zgorzelec, on the Polish-German border, with an area of 220,000 sq. m. soon.

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