ROY Ceramics SE acquires Flex Space Kirby Interchange in Houston, Texas, and receives further payment by White Horse
17 August 2017, Hungen – Today, ROY Ceramics SE (WKN RYSE88, ISIN DE000RYSE888) concluded a contract regarding the acquisition of Kirby Interchange, a flexibly usable commercial space in Houston, Texas.
Acquisition of Flex Space Kirby Interchange in Houston, Texas
The acquired property includes a rentable area of 27,264 m2 on a property area of 58,801 m2 in total. The rental rate is currently approx. 80.2% with a weighted residual term of the current lease contracts of 2.97 years and predominant use as office space. Part of the vacant commercial areas are to be rented and ROY itself is to use part of them as office areas to accommodate the administration of the planned factory. The property is situated not far from the Texas Medical Center and is within walking distance of NRG Stadium and the NRG Astrodome and has direct access to Highway 288, as well as to Interstate 610.
It is planned to incorporate this property into the company’s long-term portfolio to achieve rental income, and to create office capacities for the ROY administration.
ROY Ceramics SE pays a purchase price of USD 24.8 million, which, in addition to company capital amounting to USD 9.3 million, is to be financed with USD 15.5 million via outside capital. The expected return on the capital on the rented space amounts to approx. 11.9% p.a. initially.
Further payment by White Horse
The capital share for the purchase price is partly being financed by the payments received from White Horse. Since the press release of 13 July 2017, further partial payments amounting to USD 10.4 million have been made by White Horse. ROY Ceramics SE sold its major subsidiaries to White Horse in 2015 for a price of USD 80 million, less property tax and fees. Payments of this (including interest) amounting to USD 32.4 million have been made to date. USD 42 million is still outstanding. ROY Ceramics SE also assumes that White Horse will fulfil its obligation completely and also expects to receive monthly partial payments from White Horse until the debt has been paid off. For the further course of the intended relocation of production to Houston, Texas, ROY Ceramics SE does not see any negative effects through the settlement in further future partial payments and upholds the objective of having completed the new manufacturing plant in Houston, Texas, in approx. two years’ time.
About ROY Ceramics SE
Until the sale of the operative subsidiary of the Group in China to White Horse, ROY Ceramics SE produced a complete range of sanitary and bathroom furnishings for use in mid- to high-priced
premises. ROY Ceramics SE delivered high-quality and aesthetically appealing sanitary products within the People’s Republic of China. After receipt of the payments by White Horse, ROY Ceramics SE aims to again become a leading provider of bathroom solutions for the Chinese and international markets with its ultramodern ceramics plant that will be built in Houston, Texas.
For further information please contact us at:
ROY Ceramics SE
Gießener Str. 42
Tel.: 49 (0)69 710455-155
Or visit: www.roykeramik.de