August 17, 2017, Hungen – ROY Ceramics SE (WKN RYSE88, ISIN DE000RYSE888) today signed an agreement to acquire the Kirby Interchange, a flexible commercial space in Houston/ Texas. This acquisition is a further step to build up the production of ROY Ceramics SE in Houston/Texas and to use existing liquidity in the meantime to generate additional revenues for the company.
The acquired property comprises a leasable area of 27,264 sqm with a total land 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.
ROY Ceramics SE is paying a purchase price of USD 24.8 million, which is to 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 amounts initially to approximately 11.9% p.a..
In this context, the Company intends to propose to its Annual General Meeting the extension of the corporate purpose to also explicitly allow the Company to operate in the real estate sector.
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
Phone: +49 (0)69 710455155
Or visit: www.roykeramik.de