DGAP-News: Grand City Properties S.A.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS OR REGULATIONS

GRAND CITY PROPERTIES S.A. ANNOUNCES RATING UPGRADE TO 'Baa1' BY MOODY'S, INCLUSION IN MDAX AND EPRA AWARDS

Luxembourg, September 7, 2017 - Moody's Investors Service ("Moody's") has increased Grand City Properties S.A.'s ("GCP" or the "Company") long-term issuer rating to Baa1 with a stable outlook. Accordingly, the rating of GCP's straight and convertible bonds have been upgraded as well to Baa1 rating and the subordinated perpetual instruments have been upgraded respectively to Baa3.

The upgrade is due to GCP's lower effective leverage according to Moody's, excellent fixed charge cover ratio, ample liquidity and financial flexibility and best-in-class unencumbered assets ratio. Further, Moody's acknowledges GCP's ability and track record in reducing vacancies and increasing rental income successfully. Moody's points out GCP's geographic diversification across multiple metropolitan areas as well as the lower exposure to regulatory risk and rental caps compared to other German residential landlords as rental growth comes also from increasing occupancies.

The Moody's research on Grand City Properties S.A. is available on the Company's website:
http://grandcityproperties.com/en/downloads.html

Moreover, the Deutsche Börse has announced that GCP will be included in the MDAX index, constituting of the 50 companies that rank immediately below the companies included in the Dax index. The inclusion will be effective as of 18 September 2017 and will result in higher market visibility and accessibility.

In addition, on 6 September 2017, the European Public Real Estate Association ("EPRA") has acknowledged the Company's high transparency and EPRA best practice reporting by awarding GCP with a Gold Award, which is the highest standard award. Additionally, GCP received the Most Improved Annual Report Award. For sustainability, GCP was also awarded by EPRA with the sBPR Gold Award and Most Improved Award on sustainability. EPRA also awarded the Company's Outstanding Contribution to Society with the 1st place for its outstanding services provided to its tenants through its Social Tenant Manager program.

Christian Windfuhr, CEO of Grand City Properties: "We are very pleased to have accomplished these corporate milestones, which strongly support our equity, perpetual notes and our debt. Looking forward we reiterate our long term goal of achieving an A-/A3 credit rating. We will continue on this path by further improving our performance on all fronts. We are also pleased that our exceptional tenant service was acknowledged by EPRA, which is the result of maintaining a high dedication to our tenants."

About the Company:
Grand City Properties is a specialist in residential real estate, value-add opportunities in densely populated areas in Germany. The Company's strategy is to improve its properties through targeted modernization and intensive tenant management, and then create value by subsequently raising occupancy and rental levels. Further information: www.grandcityproperties.com

Grand City Properties (ISIN: LU0775917882) is a public limited liability company (société anonyme) incorporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 1, Avenue du Bois, L 1251 Luxembourg and being registered with the Luxembourg trade and companies register (Registre de Commerce et des Sociétés Luxembourg) under number B 165 560. Since May 2012, Grand City Properties is listed on the Frankfurt Stock Exchange.

Contact:

Grand City Properties S.A.

1, Avenue du Bois

L-1251 Luxembourg

T: +352 28 77 87 86
E: info@grandcity.lu

www.grandcityproperties.com

Press Contact:

Katrin Petersen

Grand City Properties S.A.

T: +49 (30) 374-381 5218
E: katrin.petersen@grandcity.lu

Disclaimer:
THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES.

THE SECURITIES MENTIONED IN THIS ANNOUNCEMENT HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. THERE WILL BE NO PUBLIC OFFERING OF THE SECURITIES IN THE UNITED STATES.

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.

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 DIRECTIVE 2003/71/EC, AS AMENDED (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 OR ANY OF THE MANAGERS OF A PROSPECTUS PURSUANT TO ARTICLE 3 OF THE PROSPECTUS DIRECTIVE.

THIS ANNOUNCEMENT MAY CONTAIN PROJECTIONS OR ESTIMATES RELATING TO PLANS AND OBJECTIVES RELATING TO OUR FUTURE OPERATIONS, PRODUCTS, OR SERVICES, FUTURE FINANCIAL RESULTS, OR ASSUMPTIONS UNDERLYING OR RELATING TO ANY SUCH STATEMENTS, EACH OF WHICH CONSTITUTES A FORWARD-LOOKING STATEMENT SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND THE CONTROL OF GRAND CITY PROPERTIES S.A. ACTUAL RESULTS COULD DIFFER MATERIALLY, DEPENDING ON A NUMBER OF FACTORS.