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.