Land for Equity
The innovative financing model of EPH Group AG
Initial situation
Many owners have land that is ideal for tourism projects, but do not have the expertise and resources to develop it themselves or are considering selling it for other reasons.
However, financing hotel and resort projects is becoming increasingly difficult in the current market environment. Banks are now very restrictive in granting loans, while higher interest rates mean that traditional financing is hardly viable anymore. This makes it increasingly difficult for landowners to find suitable buyers, even if their properties offer great potential.
Solution: Land for Equity
With its Land for Equity model, EPH Group AG offers sellers the option of receiving all or part of the purchase price in the form of EPH Group AG shares. This model creates a partnership-based participation in the future success of the project and opens up attractive prospects beyond the mere sale – the seller participates not only in the success of the project they have sold, but also in the overall growth and success of all EPH Group AG projects.
Advantages for sellers
For property owners, the model offers a quick and uncomplicated sale of their property. The shares are tradable on the Frankfurt Stock Exchange and the Vienna Stock Exchange, among others. This means that the shares received can be sold flexibly and at any time on the capital market – in full or in tranches, depending on individual needs and timing.
At the same time, it offers the opportunity to participate in the increase in value of the company: as each project progresses, not only does its value increase, but so does the value of the company indirectly – and with it the prospect of a rising share price.
Advantages for EPH Group AG
The model also offers decisive advantages for EPH Group AG. Using its own shares as acquisition currency enables EPH Group AG to achieve above-average growth. Each acquisition strengthens the balance sheet structure through the capitalisation of valuable tangible assets and the increase in equity.
This creates excellent conditions for further cash capital increases and the raising of debt capital, whether through the issue of new bonds or bank financing. The large number of projects that can be added to the portfolio using this model leads to considerable risk diversification. Investors benefit from a strengthened balance sheet structure and a clear growth strategy. The model is highly scalable and allows EPH Group AG to respond flexibly to market opportunities and accelerate its growth in a sustainable manner.
Land for Equity white paper
All legal and tax details relating to the Land for Equity model can be found in the white paper published by Müller Partner Rechtsanwälte GmbH and ARTUS Steuerberatung GmbH & Co KG.