EANS-News: Grand City Properties S.A.: Intended Issuance of Convertible Bonds

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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Convertible Bonds

Luxembourg (euro adhoc) - THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH OFFERS
OR SALES WOULD BE PROHIBITED BY APPLICABLE LAW

GRAND CITY PROPERTIES S.A.: Intended Issuance of Convertible Bonds

Luxembourg, 25 September 2012: Grand City Properties S.A. is
contemplating the issuance of up to EUR 100 of million convertible
bonds.

The convertible bonds will be offered to institutional investors in
an international private placement in Europe.

The net proceeds shall be used for new acquisitions of real estate
property portfolios as part of the growth strategy of the company.

About GRAND CITY PROPERTIES S.A. Grand City Properties S.A. is a
residential property investment company with main focus on
residential investments in Germany.

Forward-looking statements This news release may include
forward-looking statements. Forward-looking statements include, but
are not limited to, statements concerning estimates of expected
capital expenditures and associated costs, statements relating to
estimates of, and increases in, rental income, cash flows and
property market values and other statements which are not historical
facts. When used in this document, the words such as "could," "plan,"
"estimate", "expect", "intend", "may", "potential", "should" and
similar expressions are forward-looking statements. Although Grand
City Properties believes that its expectations reflected in these
forward-looking statements are reasonable, such statements involve
risks and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from
these forward-looking statements include the potential that the
Company's projects will experience problems due to change in market
conditions, that changes in rental prices can have a material impact
and that Grand City Properties fails to raise sufficient capital to
adequately fund its expansion activities.

Contact:

Grand City Properties S.A.
6, boulevard Pierre Dupong
L 1430 Luxemburg

www.grandcityproperties.com

THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY IN
OR INTO THE UNITED STATES (AS DEFINED IN REGULATION S UNDER THE US
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")). THIS
ANNOUNCEMENT IS NOT AN OFFER TO SELL SECURITIES OR THE SOLICITATION
OF ANY OFFER TO BUY SECURITIES, NOR SHALL THERE BE ANY OFFER OF
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SALE WOULD BE
UNLAWFUL. THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN
AND WILL NOT BE REGISTERED IN THE UNITED STATES UNDER THE SECURITIES
ACT AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT
REGISTRATION OR EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT.
THERE WILL BE NO PUBLIC OFFER OF THE SECURITIES IN THE UNITED STATES.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO
BUY ANY CONVERTIBLE BONDS.

THIS ANNOUNCEMENT IS DIRECTED AT AND IS ONLY BEING DISTRIBUTED IN THE
UNITED KINGDOM TO (I) PERSONS WHO HAVE PROFESSIONAL EXPERIENCE IN
MATTERS RELATING TO INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE
FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER
2005 (THE "ORDER"), (II) HIGH NET WORTH ENTITIES, AND OTHER PERSONS
TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED FALLING WITHIN
ARTICLE 49 OF THE ORDER, AND (III) PERSONS TO WHOM IT MAY OTHERWISE
LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO
AS "RELEVANT PERSONS"). THIS COMMUNICATION MUST NOT BE READ, ACTED ON
OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT
OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS
AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH
RELEVANT PERSONS. BY READING THIS ANNOUNCEMENT, THE READER
ACKNOWLEDGES THAT IT IS A PERSON EITHER (I) OUTSIDE THE UNITED
KINGDOM OR (II) FALLING WITHIN ONE OF THE FOREGOING CATEGORIES.

IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA ("EEA"), THIS
ANNOUNCEMENT AND ANY OFFER IF MADE SUBSEQUENTLY IS DIRECTED ONLY AT
PERSONS WHO ARE "QUALIFIED INVESTORS" WITHIN THE MEANING OF ARTICLE
2(1)(E) OF THE DIRECTIVE 2003/71/EC (THE "PROSPECTUS DIRECTIVE")
("QUALIFIED INVESTORS"). ANY PERSON IN THE EEA WHO ACQUIRES THE
SECURITIES IN ANY OFFER (AN "INVESTOR") OR TO WHOM ANY OFFER OF THE
SECURITIES IS MADE WILL BE DEEMED TO HAVE REPRESENTED AND AGREED THAT
IT IS A QUALIFIED INVESTOR. ANY INVESTOR WILL ALSO BE DEEMED TO HAVE
REPRESENTED AND AGREED THAT ANY SECURITIES ACQUIRED BY IT IN THE
OFFER HAVE NOT BEEN ACQUIRED ON BEHALF OF PERSONS IN THE EEA OTHER
THAN QUALIFIED INVESTORS, NOR HAVE THE SECURITIES BEEN ACQUIRED WITH
A VIEW TO THEIR OFFER OR RESALE IN THE EEA TO PERSONS WHERE THIS
WOULD RESULT IN A REQUIREMENT FOR PUBLICATION BY THE COMPANY OF A
PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

Further inquiry note:
Herr Christian Hupfer

Tel.: 004930887088192

E-Mail: christian.hupfer@grandcityhotels.com

end of announcement euro adhoc
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company: Grand City Properties S.A.
boulevard Pierre Dupong 6
D-L-1430 Luxembourg
phone: 0035226187379
FAX: 0035226187779
WWW: http://www.grandcityproperties.com
sector: Financial & Business Services
ISIN: LU0775917882
indexes: Entry Standard Index
stockmarkets: Open Market: Frankfurt
language: English