EPH Group AG
EPH Group AG:
Bond 2025-2032
10 % interest p.a.
monthly interest payment
ISIN: DE000A3L7AM8
WKN: A3L7AM
Subscription start: Jan 1, 2025
EPH Group AG:
Bond 2023-2030
10% interest p.a.
monthly interest payment
ISIN: DE000A3LJCB4
WKN: A3LJCB
EPH Group AG plans to build up a diversified portfolio of high-yield hotels and resorts in the premium and luxury segment in Austria, Germany and other top European destinations.
New bond EPH Group AG
EPH Group AG is issuing another fixed-interest tourism corporate bond (WKN: A3L7AM / ISIN: DE000A3L7AM8) with a volume of up to EUR 50 million, a term of seven years, an interest rate of 10% p.a. and a denomination of EUR 1,000. Interest will again be paid out to investors monthly, for the first time on March 24, 2025.
In contrast to the unsecured bonds 2023/2030 issued in July 2023 (ISIN: DE000A3LJCB4), the new bond is secured by the pledging of shares in subsidiaries and associated companies of the issuer. This significantly improves the risk profile of the new bond.
The subscription period for the public offer in Germany and Austria begins on Tuesday, January 21, 2025. The planned value date for the 2025/2032 bonds is Monday, February 24, 2025.
In addition, the issuer is submitting an exchange offer to the holders of the 2023/2030 bonds (ISIN: DE000A3LJCB4), who can exchange 2023/2030 bonds for the new, secured 2025/2032 bonds at a ratio of 1:1 via their respective custodian bank. The exchange period also begins on January 21, 2025.
Market environment
The vacation hotel industry is characterized by decades of sustainable growth and crisis resilience. The asset class has proven its resilience, particularly during the coronavirus pandemic. Economic development in tourism is growing strongly worldwide. There is a particular trend towards nearby nature and year-round destinations. The season is lengthening and shifting. Climate protection and sustainability are playing an increasingly important role.
The performance of the vacation hotel industry has overtaken the hotel business in the city in recent years. Compared to city hotels, significantly higher revenue per room and guest has been achieved. New record occupancy rates were achieved. Daily room rates (ADR) increased significantly. The premium and luxury segment is developing at an above-average rate, as demand for luxury vacations has risen enormously among a constantly growing middle class worldwide.
Nevertheless, the vacation hotel market is far from exhausted and offers enormous growth potential. The focus of institutional investors is also increasingly shifting from city business hotels to the vacation hotel industry and vacation destinations in Europe.
Strategy
Due to this positive development, EPH Group AG's clear focus is on the vacation hotel sector and cities with a high level of tourist appeal. To optimize returns and risks, EPH Group AG pursues a diversified investment approach with a balanced mix of existing properties and project developments at various stages. The aim is to achieve steady value growth with positive cash flow from existing hotels on the one hand and to realize above-average returns from our own developments on the other.
Thanks to our access to numerous international hotel brands, we are able to select the best possible operator with a tailor-made operating concept for each project. The type of contract (lease, management or hybrid contract) is determined individually for each property following a detailed opportunity/risk analysis.
The portfolio is to be supplemented by investments in related areas, such as gastronomy, culinary, food & beverage and other tourism projects. The aim is to exploit synergy effects with the core business and continuously increase the value of the company. In the current environment, a sustainable and responsible corporate culture is particularly important to us. Our ESG principles therefore determine our entrepreneurial activities
Focus on capital market:
IBO / IPO
To partially finance the projects, EPH Group AG already issued a bond on the Vienna Stock Exchange (IBO) in July 2023 and will issue another secured bond at the beginning of 2025. An IPO in the “direct market plus” segment of the Vienna Stock Exchange is planned in the medium term. This will give institutional and private investors the opportunity to invest in this constantly growing market segment. The capital market-oriented financing strategy of EPH Group AG should contribute to a balanced financing structure and enable the financing of planned projects at economic conditions even in the current market environment.
In issuing the two bonds and preparing the IPO, EPH Group AG is being supported by Wiener Privatbank as the capital market partner of the Vienna Stock Exchange. BankM AG in Frankfurt will be responsible for the technical settlement of the bonds.
Legal and tax advice to EPH Group AG is being provided by Müller Partner Rechtsanwälte (Vienna), Luther Law (Frankfurt), Crowe LLP (Munich and Vienna), SOT Süd-Ost Treuhand (Vienna) and the auditing firm Cura (Vienna).
Background
EPH Group AG consists of a group of investors, project developers, hotel real estate, financing and capital market experts. Thanks to the EPH team's many years of experience, it has excellent market access and a full acquisition pipeline.
In the areas of feasibility studies, due diligence, valuation, contract management, M&A, portfolio strategy, development and construction, EPH Group AG works together with the leading hotel and tourism consulting companies in Austria and Germany. This allows us to draw on comprehensive expertise and develop the best possible strategy for each project.
