August 17, 2017, Hungen, Germany – ROY Ceramics SE (WKN RYSE88, ISIN DE000RYSE888) today signed an agreement to acquire the Kirby Interchange, a flex commercial space in Houston/ Texas.

Acquisition Flex Space Kirby Interchange in Houston/Texas

The acquired property comprises a leasable area of 27,264 sqm with a total site area of 58,801 sqm. The occupancy rate is currently approximately 80.2% with a weighted remaining term of the current leases of 2.97 years and predominantly used as office space. The vacant commercial space is to be partially leased and partially occupied by ROY as office space itself to accommodate the administration of the planned factory. The property is located not far from the Texas Medical Center and within walking distance of NRG Stadium and the NRG Astrodome and has direct access to Highway 288, as well as Interstate 610.

It is planned that this property will become part of the company’s long-term portfolio to generate rental income, as well as provide office capacity for ROY administration.

ROY Ceramics SE will pay a purchase price of USD 24.8 million, which will be financed by USD 15.5 million in debt in addition to USD 9.3 million in equity. The expected return on equity on the leased space is initially approximately 11.9% per annum.

Further payment from White Horse

The equity portion for the purchase price will be partially funded from payments received from White Horse. Since the press release of July 13, 2017, further partial payments have been received from White Horse in the amount of USD 10.4 million. ROY Ceramics SE had sold its material subsidiaries to White Horse in 2015 for a price of USD 80 million, net of property taxes and fees. To date, payments (including interest) of USD 32.4 million have been made on this. USD 42 million is still outstanding. ROY Ceramics SE continues to expect that White Horse will meet its obligation in full and expects to continue to receive monthly installments from White Horse until the debt is settled. ROY Ceramics SE does not foresee any negative impact on the further progress of the planned relocation of production to Houston/Texas due to the settlement in further future partial payments and continues to adhere to the goal of having the new production plant in Houston/Texas completed in approximately two years.

About ROY Ceramics SE

Until the sale of the Group’s operating subsidiaries in China to White Horse, ROY Ceramics SE produced a full range of sanitaryware and bathroom fixtures for use in mid- to high-priced premises. ROY Ceramics SE supplied high quality and aesthetically pleasing sanitary ware within the People’s Republic of China. After receiving payments from White Horse, ROY Ceramics SE aims to once again become a leading supplier of bathroom solutions to the Chinese and international markets with its state-of-the-art ceramic plant to be built in Houston, Texas.

For more information, please contact:

ROY Ceramics SE
Giessener Str. 42
35410 Hungen
Phone: +49 (0)69 710455155

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