Broen Holding BV’s bond issue starts today. The issuer is aiming for revenue of EUR 25 million for its real estate project and is offering an annual coupon of 7.5%, which is well above average. In addition, there is a first-rate mortgage and an extensive trust and security concept.
Gentlemen, what distinguishes the 7.5% Henri Broen Holding BV 2020/25 bond?
Mainitz: Our bond offers investors a first-rate mortgage as well as a maximum security concept through a trustee and an additional high coupon of 7.5% pa With this combination and the high quality of our real estate project, we differentiate ourselves significantly and offer investors an extremely attractive capital investment.
Perhaps once briefly the project for the introduction in your own words – what is it about?
Mainitz: The Henri Broen Holding wants to finance the Koningsbosch project with the bond issue. Koningsbosch is located in the triangle between Belgium, the Netherlands and Germany, where there is a very narrow strip of land a few kilometers in diameter. In the immediate vicinity of the metropolitan areas of Maastricht, Aachen and popular attractions such as the Outlet Center Roermond, Koningsbosch is idyllically located in the Netherlands. So we’re talking about the realization of an extremely interesting real estate project, essentially about the rededication of the famous historical monastery of the same name into a modern hotel – a 4-star-plus boutique hotel that fits perfectly into this region.
The bridge: There is an irrevocable plan for the entire area with its more than 54,000 square meters and three sub-projects.
What else does it include?
The bridge: The venerable monastery is being converted into a so-called 4-star-plus boutique hotel. We will certainly come to the details later. Point two is the sale of 45 villas that are to be built on the site. We not only sell the land, but an overall concept. This means that we receive high cash flows at an early stage. Finally, the third point is a plot of land for an associated supermarket within the area. I would like to explicitly point out that the project is already in the “Push to Start” phase.
Who are the participants in this project?
Mainitz: The management of the holding company, which is issuing the bond, consists of the two of us. Henri is the owner and sole shareholder, he has more than three decades of professional experience in the international implementation of major projects. Henri would certainly not have committed himself to this project in Koningsbosch if it hadn’t been extremely promising. I know his enthusiasm for historical buildings and his passion for the extraordinary Koningsbosch project.
The bridge: In addition to the management, there is a qualified and experienced team. I would like to mention our designated hotel manager at this point. Tim Reus has 15 years of professional experience in the international hotel business and is already at our side: He is fully involved in the planning, development and the coming start-up phase. Two permanent consultants, one on the Dutch and one on the German side, who have been involved in the project for a long time, are other important experts. Together with you and additional service providers, we will make the project a success.
What is the schedule, when will the first guest be welcomed?
Mainitz: The empirical value, which also comes from my experienced colleague, says 30 months from the drawing board to operation. We expect an opening in May 2023.
The bridge: The villas and the supermarket, however, have significantly shorter project times. The sale of the supermarket’s land will bring a cash flow of up to EUR 1 million in the next year, the villas will be sold over the next few years until 2023 and will bring in up to EUR 12 million.
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