Hili Properties p.l.c.

Issuer profile

Hili Properties p.l.c. owns and manages a number of commercial real estate for lease in several of Europe’s most thriving cities and up-and-coming locations, including Malta, Estonia, Latvia, Lithuania and Romania. Its portfolio consists of business blocks and office space, grocery-anchored shopping centres, healthcare facilities, as well as property that houses the well-known McDonald’s restaurants. As of August 2021, its portfolio value exceeds €115 million.

Operating a low-risk business model that avoids property development and instead focuses on investment, Hili Properties’ strategy centres on providing attractive, risk-adjusted total returns that originate from stable yield, supported by its current portfolio’s long-term contracted cash flows and income growth.

Issuer need

As part of its growth strategy, Hili Properties p.l.c. sought to expand its portfolio through new property acquisitions that are set to complete in 2022 and 2023. The company wants to continue its expansion strategy to more Central and Eastern Europe countries that present stable economic growth and potential via the acquisition of strategically positioned immovable property that is typically occupied by reputable tenants, with a view to securing both sustainable income and strong capital returns. As a result, the company wished to raise capital, which together with its readily-available funds and financing from bank facilities, as well as its parent company, would facilitate the completion of these property acquisitions.

Solution

Calamatta Cuschieri was approached by Hili Properties p.l.c. to explore the ideal funding options to bring the Group’s vision to fruition. A direct listing of ordinary shares was regarded as the best solution for the type and nature of investment being contemplated. The shares were offered, at a price of €0.27 per new ordinary share.