GCP is a specialist real estate company focused on investing in and managing value-add opportunities in the German real estate market, especially in urban agglomerations. The company pursues a strategy of upgrading its properties through targeted modernisations, intensive tenant care and adding value to increase occupancy rates and rents.
IR.on AG has been in charge of the company’s capital market communication since mid-2013. GCP has since achieved impressive growth from 16,000 to 84,000 residential units at the end of 2016. This growth has been financed with the help of various capital measures while maintaining a very solid leverage. At the end of 2016, the loan-to-value stood at 35%, while the average borrowing costs amounted to 1.6%.
Task and result:
IR.on AG’s assignment for GCP comprises the full day-to-day IR activities. As an issuer of shares as well as convertible, perpetual and fixed-income bonds, the company must fulfil extensive disclosure obligations. What is more, in the context of the company’s dynamic growth, the investor relations and reporting activities are expanded continuously in order to meet investors’ and stakeholders’ growing information requirements. The Grand City Group’s visibility and reputation are being increased through continuous press relations. In addition, IR.on AG provides strategic advice on PR and IR matters as well as support in special projects such as the preparation of the company’s uplisting to the Prime Standard in May 2017.
Awareness of GCP has increased notably in recent years as the company has established itself as a heavyweight in the German real estate sector and the capital market. In terms of share price performance, the 2012 IPO was the most successful one in the German stock market since 2007 (source: Bloomberg/FAZ, spring 2017). The uplisting to the Prime Standard of the Frankfurt Stock Exchange in May 2017 and the resulting admission to the selection indices of Deutsche Börse marked another milestone in the history of the company, which will further increase investors’ confidence as well as the transparency, visibility and tradability of the share. In September 2017 GCP entered into the MDAX, which represents 50 largest and most liquid German companies after the DAX.