GSG Group, a real-estate company controlled by Czech billionaire Radovan Vitek, plans to raise as much as 1 billion euros ($1.34 billion) from international investors to finance an expansion across Europe.
GSG Group is looking for acquisitions in central Europe, its main area of business, and “high-end” projects further west in countries including France, Italy or Switzerland, Chief Executive Officer Martin Nemecek said in a July 31 interview in Prague. It is also vying for a 16.8 percent stake in Vienna-based CA Immobilien Anlagen that UniCredit Bank Austria is offering to sell, he said.
“We’re in discussions with major European investment banks on what would be the best and the most flexible solution to raise the capital” for new properties, Nemecek said.
Luxembourg-registered GSG Group is weighing options whether to sell new shares and bonds or seek an equity partner to finance its future growth. All possibilities are “on the table” and the company is discussing with major investment banks in Europe on the best approach.
The company is also in “initial talks” with several investors that may become GSG Group equity partners, the executive said.
GSG Group, formerly known as Orco Germany SA, was enlarged by contributing Vitek’s flagship real-estate company, Czech Property Investments AS, into the entity in June. GSG is one of the largest owners of commercial real-estate in Berlin. Radovan Vitek now holds about 94 percent in GSG Group.
GSG shares rose 0.4 percent to 0.526 euro as of 2:15 p.m. in Germany.
GSG is publishing its first financial results since the integration on Aug. 28, when it also holds an extraordinary shareholders’ meeting. That day, investors will vote to approve management rights to issue as many as 4 billion of new shares in five years and change the company’s name to CPI Property Group.
Czech Property Investments had a total assets value of 3.2 billion euros at the end of 2013. GSG had assets worth 838 million euros as of end-March.