Registration of the capital increase concluded our placement of 400,000 ordinary shares from the capital approved in 2018. The package was purchased in its entirety by Munich-based holding company ISURUS, securing one third of the voting rights and making it one of the largest individual shareholders.
Dr Jochen Felsenheimer of ISURUS on the acquisition: "After careful analysis of the market and company, our holding company decided to invest in B-A-L Germany as we believe in its business model, management and future prospects," says Dr Jochen Felsenheimer, Managing Director of ISURUS UBG, adding: "B-A-L Germany has established itself in a profitable niche, piecemeal purchase of residential rental property in Saxony's D-locations. In this segment, B-A-L Germany benefits not only from unusually low purchase prices, resulting in high, generally double-digit rental returns, but also from low vacancy rates. As a result, the business model is sustainably profitable and highly predictable, two essential requirements for any investments we make. We are convinced that B-A-L Germany has a promising future and are delighted to support the company with our capital market expertise."
CEO Falko Zschunke welcomed the deal: "I am delighted to have secured such a renowned partner as anchor shareholder. I look forward to their valuable support in structuring corporate financing and stimuli to accelerate further growth. The company is also currently very technical in focus, so it stands to benefit greatly from the new major shareholder's commercial expertise. I expect their long-term commitment to have a positive impact on the company's future development."
Having registered the capital measure, the company is already directly tackling the next capital steps passed at the Annual General Meeting on 17 December 2019. CEO Falk Zschunke commented this as follows: "We are currently working hard to implement the capital measures passed in December. Our next step is to increase the real capital. Integrating the real estate package with 2,000 m^2 of rented floor space in the current year will have a significant impact on net income. We promised our shareholders that we would generate positive earnings in 2020. Besides doubling turnover and residential space, we have made this goal our mission for this year."