Züblin France announces capital increase (FR)

Züblin Immobilière France, the publicly listed French REIT vehicle of Züblin Immobilien Holding AG, today announced the launch of a €55 million capital increase through a free attribution of warrants, and a restricted issue of mandatory convertible bonds convertible in shares of €28 million to €35 million. The capital increase and bond issue will provide Züblin Immobilière France with the appropriate financial structure to execute the second phase of its investment program.

Capital increase
The capital increase will be effected through a free attribution of warrants to shareholders with an exchange ratio of 4:3, whereby four warrants entitle the holder to subscribe for three new shares. The subscription period will be from 26 June to 2 July 2007 followed by a rump placement of new shares on 9 and 10 July 2007. Trading in the new shares will begin on 13 July 2007. The subscription price of €14.00 per new share is at 3.7% premium to Net Asset Value, based on the net value of the investment portfolio after dividends. Züblin Immobilien Holding AG currently holds 68.18% of the shares of Züblin Immobilière France and will fully subscribe to the issue .

Mandatory convertible bonds
In parallel, Züblin Immobilière France has announced the issue between 2,000 and 2,500 mandatory convertible bonds (MCBs) restricted to Forum European Realty Income III G.P., representing gross proceeds of €28 million to €35 million. The funds managed by Forum Partners are the significant shareholder of Züblin Immobilien Holding AG. Subject to approval by an extraordinary shareholder's meeting, the MCB's will be will be issued on 7 August 2007 and can be converted into shares starting on 7 August 2008.

Source: Züblin

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