EQS-Adhoc: ACCENTRO Real Estate AG informs that the sole bondholder of the 2021/2029 bond no longer supports the restructuring solution and negotiations with Ad Hoc Group are ongoing

ACCENTRO Real Estate AG informs that the sole bondholder of the 2021/2029 bond no longer supports the restructuring solution and negotiations with Ad Hoc Group are ongoing

Berlin, 12 August 2024 – The sole bondholder of the 2021/2029 bond (ISIN DE000A3H3D51 / WKN A3H3D5) has informed ACCENTRO today that it will no longer support a comprehensive restructuring solution. Against this background, the bondholder of the 2021/2029 bond is currently actively and constructively engaged in negotiations with a significant group of bondholders of the 2020/2026 bond accounting in total for approximately 55 % of the outstanding 2020/2026 bond (“Ad Hoc Group”) regarding a potential sale and transfer of the 2021/2029 bond to certain members of the Ad Hoc Group. The Management Board of ACCENTRO expects a result of those negotiations in the short term.

In case the negotiations are resolved positively, this would lead to the current bondholder of the 2021/2029 bond transferring its position in full to certain members of the Ad Hoc Group. The Management Board is confident that, in this case, the comprehensive restructuring negotiations can be continued efficiently and effectively. The ongoing restructuring negotiations focus around a financing solution led by (i) bondholders of the 2020/2026 bond or, alternatively, (ii) by NongHyup Bank as trustee of the Shinhan AIM Structured Investment Fund No. 5.

Such restructuring negotiations will then be continued on the basis of the following current key assumptions:

• Strategic realignment with complete focus on the privatization business.
• Exit from the development and management of own real estate portfolio. Expected total proceeds from the sale of the existing real estate portfolio and the owner-occupied property in the range of EUR 250 Mio. to EUR 300 Mio.
• Distribution and sale of the privatization assets with total proceeds in the range of EUR 215 Mio. to EUR 235 Mio. expected with partial use of the proceeds for reinvestment in the new development of the privatization portfolio with a targeted sustainable volume of around between EUR 85 Mio. and EUR 105 Mio.
• Additional liquidity-generating reduction in other receivables and investments in the range of EUR 20 Mio. to EUR 25 Mio. expected.
• Comprehensive restructuring of both the debt and equity sides of ACCENTRO. Details depend, inter alia, on further discussions with key existing stakeholders and possibly third parties.

In the event that the negotiations regarding a potential sale and transfer of the 2021/2029 bond to certain members of the Ad Hoc Group were to fail, the Management Board would have to immediately reassess its going concern assessment and whether it would have to file for insolvency. A liquidation analysis commissioned by ACCENTRO indicates a potential insolvency quota for secured bondholders of 39 % in a base case scenario.

At the same time the Ad Hoc Group is still generally prepared to provide ACCENTRO with an interim funding of, inter alia, the interest payment due on 13 August 2024 under the 2020/2026 bond and other potential short-term liquidity needs of ACCENTRO, including but not limited to, the interest payment due on 23 September 2024 under the 2021/2029 bond, subject to certain conditions. Therefore, ACCENTRO and the Ad Hoc Group are negotiating a commitment letter including a term sheet. Hence, ACCENTRO expects to pay the interest payment due on 13 August 2024 within the so-called "grace period" under the bond terms and conditions which is 30 days from the relevant due date. This being said, ACCENTRO’s liquidity situation with freely available liquidity in the low-single-digit millions (not taking into account the effects of any interim funding) to be sufficient to successfully finalize further discussions on a long-term financing solution for ACCENTRO, including an overall realignment of its capital structure by the end of the year.

Against this background and following a request by the Ad Hoc Group, ACCENTRO will request the previous extended independent business review to be issued in the form of the IDW S6 standard.

Notifying person:

Thomas Eisenlohr, Head of Investor Relations
Phone: +49 (0)30 887181272
eisenlohr@accentro.de

Berlin, 12 August 2024

The Management Board 
ACCENTRO Real Estate AG
Kantstrasse 44/45
D-10625 Berlin

ISIN: DE000A0KFKB3 / DE000A3H3D51 / DE000A254YS5

Stock exchanges: Frankfurt Stock Exchange, regulated market (Prime Standard) / Luxembourg Stock Exchange

1966307  13-Aug-2024 CET/CEST