Obligation ADO Estate 3.25% ( XS2010029663 ) en EUR

Société émettrice ADO Estate
Prix sur le marché 26.88 %  ▼ 
Pays  Allemagne
Code ISIN  XS2010029663 ( en EUR )
Coupon 3.25% par an ( paiement annuel )
Echéance 04/08/2025 - Obligation échue



Prospectus brochure de l'obligation ADO Properties XS2010029663 en EUR 3.25%, échue


Montant Minimal /
Montant de l'émission /
Description détaillée ADO Properties est une société immobilière allemande cotée en bourse, spécialisée dans l'acquisition, la gestion et le développement de propriétés résidentielles et commerciales, principalement à Berlin.

L'Obligation émise par ADO Estate ( Allemagne ) , en EUR, avec le code ISIN XS2010029663, paye un coupon de 3.25% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 04/08/2025







Prospectus
for the admission to trading
of 27,651,006 newly issued ordinary shares in dematerialized form with no nominal value (the "New Shares")
on the
regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse)
with simultaneous admission to the sub-segment thereof with additional post-admission obligations (Prime
Standard)
of
ADO Properties S.A.
Senningerberg, Grand Duchy of Luxembourg
International Securities Identification Number (ISIN): LU1250154413
German Securities Code (Wertpapierkennnummer, WKN): A14U78
Common Code: 125015441
Ticker Symbol: ADJ
This document constitutes a prospectus for the purposes of the admission to trading of 27,651,006 New Shares on
the regulated market segment of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with simultaneous
admission to the sub-segment thereof with additional post-admission obligations (Prime Standard) (the
"Prospectus"). This Prospectus has been prepared in the form of a single document within the meaning of
Article 6 (3) of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 on
the prospectus to be published when securities are offered to the public or admitted to trading on a regulated
market, and repealing Directive 2003/71/EC (the "Prospectus Regulation") in connection with the Commission
Delegated Regulation (EU) 2019/980 of March 14, 2019 (the "Delegated Regulation (EU) 2019/980").
The Commission de Surveillance du Secteur Financier (the "CSSF"), in its capacity as competent authority in the
Grand Duchy of Luxembourg under the Prospectus Regulation and the Luxembourg law of July 16, 2019 on
prospectuses for securities (the "Luxembourg Prospectus Law"), has approved this document as a prospectus.
By approving this Prospectus in accordance with Article 20 of the Prospectus Regulation, the CSSF assumes no
responsibility and does not give any undertaking with regard to the economic and financial soundness of the
transaction or the quality or solvency of ADO Properties S.A. in line with the provisions of Article 6 (4) of the
Luxembourg Prospectus Law. In accordance with Article 12 of the Prospectus Regulation, this Prospectus is
valid for 12 months after its approval. The obligation to prepare a supplement to the Prospectus pursuant to
Article 23 of the Prospectus Regulation applies in cases of a significant new factor, material mistake or material
inaccuracy until the later of (i) the admission of the New Shares to trading or (ii) the closing of the offer period.
Thereafter, the Prospectus does not have to be supplemented pursuant to Article 23 of the Prospectus Regulation.
This Prospectus will be published in electronic form on the website of the Luxembourg Stock Exchange
(www.bourse.lu) and under the Investor Relations heading of the website of ADO Properties S.A.
(www.ado.properties).
This Prospectus has been notified to the German Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht ­ "BaFin") in accordance with Article 25 (1) of the Prospectus Regulation and the
European passporting mechanisms set out in the Prospectus Regulation.
Listing Agent
J.P. Morgan
The date of this Prospectus is April 7, 2020


TABLE OF CONTENTS
Section
Page
SUMMARY OF THE PROSPECTUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-1
ZUSAMMENFASSUNG DES PROSPEKTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S-8
1.
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
1.1
Risks related to the ADO Properties Group's Business Activities and Industry . . . . . . . . . . .
1
1.2
Risks related to the ADO Properties Group's Financial Situation . . . . . . . . . . . . . . . . . . . . . .
14
1.3
Regulatory and Legal Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
1.4
Risks related to the ADO Properties Group's Tax Structure . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
1.5
Risks related to the Company's Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27
1.6
Risks related to the Business Combination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
2.
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
2.1
Responsibility Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
2.2
Subject-Matter of this Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
2.3
No Consent for Use of the Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
2.4
Admission to Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
2.5
Costs of the Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
2.6
Information on the New Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
2.7
Material Interests of Persons regarding the Listing, including Conflict of Interests . . . . . . . .
37
2.8
Approval of this Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
2.9
Forward-looking Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
2.10
Appraiser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
2.11
Sources of Market Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
2.12
Documents Available for Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
2.13
Currency Presentation and Presentation of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
2.14
Time Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
2.15
Rating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
3.
REASONS FOR THE LISTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
4.
DIVIDEND POLICY; RESULTS AND EARNINGS PER SHARE; USE OF PROFITS . . . . . .
46
4.1
General Provisions relating to Profit Allocation and Dividend Payments . . . . . . . . . . . . . . . .
46
4.2
Dividend Policy and Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
5.
CAPITALIZATION AND INDEBTEDNESS; STATEMENT ON WORKING CAPITAL
AND SIGNIFICANT CHANGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
5.1
Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
5.2
Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
5.3
Statement on Working Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
5.4
Statement on Material Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
6.
SELECTED CONSOLIDATED FINANCIAL INFORMATION OF THE COMPANY . . . . . .
49
6.1
Selected Consolidated Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
6.2
Additional Non-IFRS Performance Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF NET ASSETS, FINANCIAL
CONDITION AND RESULTS OF OPERATIONS OF THE ADO PROPERTIES GROUP . . .
56
7.1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
7.2
Key Factors Affecting Our Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
7.3
Key Statement of Profit or Loss Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
7.4
Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
7.5
Real Estate Portfolio and Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
7.6
Overview of Our Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
7.7
Maintenance and Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
7.8
Liquidity and Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
7.9
Disclosure about Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71
7.10
Critical Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
7.11
Recent Accounting Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
-i-


Section
Page
8.
PROFIT FORECAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
8.1
Guidance of the Funds From Operations (FFO 1) for the Fiscal Year 2020 of the
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
8.2
FFO 1 Guidance 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
8.3
Explanatory Notes to the FFO 1 Guidance 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
8.4
Other Explanatory Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79
9.
PRO FORMA CONSOLIDATED FINANCIAL INFORMATION OF ADO PROPERTIES
S.A. AS OF AND FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019 . . . . . . . . . . . . . . .
80
9.1
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
9.2
Historical financial information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
9.3
Basis for preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
9.4
Procedures and assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82
9.5
Alignment of the historical financial information of ADLER Real Estate and ADO Group . .
83
9.6
Pro Forma Consolidated Financial Information as of and for the fiscal year ended
December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92
9.7
Notes to the Pro Forma Consolidated Financial Information as of and for the fiscal year
ended December 31, 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98
9.8
Auditor's report on the Pro Forma Consolidated Financial Information . . . . . . . . . . . . . . . . .
106
10.
DESCRIPTION OF THE TRANSACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
10.1
Business Combination Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108
10.2
Description of the ADLER Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
109
10.3
Share Purchase Agreements for Consus Real Estate Shares . . . . . . . . . . . . . . . . . . . . . . . . . . .
120
10.4
Call/Put-Option Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
120
10.5
Strategic Cooperation Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
121
10.6
Description of the Consus Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
122
10.7
Economic and Strategic Reasons for the Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126
11.
MARKETS AND COMPETITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
11.1
The German Real Estate Market ­ Overview and Market Drivers . . . . . . . . . . . . . . . . . . . . . .
127
11.2
German Residential Real Estate Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131
11.3
Berlin Macroeconomic Situation, Demographic Drivers and Residential Real Estate
Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
136
11.4
The German Homebuilding Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
137
11.5
Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
141
12.
BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
12.1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142
12.2
Competitive Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
143
12.3
Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
145
12.4
Our Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
146
12.5
Business Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
148
12.6
Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
151
12.7
Material Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
153
13.
REGULATORY ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
13.1
Limitations of German Tenancy Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
163
13.2
Current Developments in German Tenancy Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
167
13.3
Restrictions Applicable to Subsidized Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
170
13.4
Further Restrictions on the Use of Properties under Private and Public Law . . . . . . . . . . . . . .
172
13.5
Liability for Environmental Contamination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
173
14.
SHAREHOLDER STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
15.
GENERAL INFORMATION ON THE COMPANY AND THE ADO PROPERTIES
GROUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
15.1
Formation and Incorporation, History and Development, Commercial Name . . . . . . . . . . . . .
177
15.2
Legal and Commercial Name, Address and LEI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
177
15.3
Corporate Purpose, Registered Office, Fiscal Year and Duration . . . . . . . . . . . . . . . . . . . . . . .
177
15.4
Group Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
178
15.5
The Company's Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
181
-ii-


Section
Page
15.6
Statutory Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
181
15.7
Luxembourg Paying Agent and LuxCSD Principal Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . .
181
16.
DESCRIPTION OF THE SHARE CAPITAL OF ADO PROPERTIES S.A. AND APPLICABLE
REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
16.1
Current Share Capital; Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
16.2
Development of the Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
16.3
Authorized Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
16.4
Issuance of New Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
16.5
Share Premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183
16.6
Non-Share Capital Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183
16.7
Purchase of Own Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183
16.8
Share-Based Remuneration and Stock Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
185
16.9
Ownership and Transfer of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
185
16.10
Variation of Rights; Amendments of the Articles of Association . . . . . . . . . . . . . . . . . . . . . . .
185
16.11
Changes in Share Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
185
16.12
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
186
16.13
Voting Rights, General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
186
16.14
Information Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
188
16.15
Distribution Of Assets on Winding-Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
188
16.16
Mandatory Takeover Bids and Exclusion of Minority Shareholders . . . . . . . . . . . . . . . . . . . .
189
16.17
Shareholding Disclosure Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
190
16.18
Directors Dealings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
192
17.
DESCRIPTION OF THE GOVERNING BODIES OF THE COMPANY . . . . . . . . . . . . . . . . . .
194
17.1
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
194
17.2
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
194
17.3
Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
198
17.4
Senior Management of the ADO Properties Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
199
17.5
Certain Information on the Members of the Board of Directors, Audit Committee, Nomination
and Compensation Committee, Ad Hoc Committee and Senior Management of the ADO
Properties Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
202
17.6
Conflicts Of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
202
17.7
General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
202
17.8
Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
203
17.9
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
204
18.
CERTAIN RELATIONSHIPS AND RELATED-PARTY TRANSACTIONS . . . . . . . . . . . . . . . .
205
19.
TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
207
19.1
Taxation in the Federal Republic of Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
207
19.2
Taxation in the Grand Duchy of Luxembourg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
213
20.
INCORPORATION BY REFERENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
218
21.
FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F-1
22.
VALUATION REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1
23.
GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G-1
24.
RECENT DEVELOPMENTS AND OUTLOOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O-1
24.1
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O-1
24.2
Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O-2
25.
ADDRESSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
-iii-


SUMMARY OF THE PROSPECTUS
A ­ INTRODUCTION CONTAINING WARNINGS
This prospectus (the "Prospectus") relates to 27,651,006 newly issued ordinary shares in dematerialized form
with no nominal value, International Securities Identification Number ("ISIN") LU1250154413, of ADO
Properties S.A. (Legal Entity Identifier ("LEI") 391200OYYFJ3DWAMEC69) (the "New Shares"), with its
registered office at 1B Heienhaff, L-1736 Senningerberg, Grand Duchy of Luxembourg ("Luxembourg")
(telephone: +352 278 456 710; website: www.ado.properties) (the "Company" and, together with its
consolidated subsidiaries, "we", "us", "our" or the "ADO Properties Group").
This Prospectus has been filed with and approved by the Commission de Surveillance du Secteur Financier
(the "CSSF"), 283, route d'Arlon, L-1150 Luxembourg (telephone: +352 26 25 1 - 1 (switchboard); fax:
+352 26 25 1 - 2601; e-mail: [email protected]) as competent authority pursuant to Article 6 of the
Luxembourg law of July 16, 2019 on prospectuses for securities (the "Luxembourg Prospectus Law") for the
purposes of Regulation (EU) 2017/1129 of the European Parliament and of the Council of June 14, 2017 on
the prospectus to be published when securities are offered to the public or admitted to trading on a regulated
market, and repealing Directive 2003/71/EC (the "Prospectus Regulation") on April 7, 2020.
This Summary should be read as an introduction to this Prospectus. Any decision to invest in the shares of the
Company should be based on a consideration of this Prospectus as a whole by an investor. Investors in the
shares of the Company could lose all or part of their invested capital. Where a claim relating to the
information contained in this Prospectus is brought before a court, the plaintiff investor might, under national
law, have to bear the costs of translating this Prospectus before the legal proceedings are initiated. Civil
liability attaches only to persons who have tabled this summary where the summary includes misleading,
inaccurate or inconsistent statements, when read together with the other parts of this Prospectus, or where it
does not provide, when read together with the other parts of this Prospectus, key information in order to aid
investors when considering whether to invest in the shares of the Company.
B ­ KEY INFORMATION ON THE COMPANY
Who is the Issuer of the securities?
Issuer Information
The Company's legal name is ADO Properties S.A. and it operates under the commercial name ADO
Properties. The Company, with Legal Entity Identifier (LEI) 391200OYYFJ3DWAMEC69, has its registered
office at 1B Heienhaff, L-1736 Senningerberg, Luxembourg, and is registered with the Luxembourg Register
of Commerce and Companies (Registre de Commerce et des Sociétés, Luxembourg) under number B197554.
The Company is a public limited liability company incorporated and operating under Luxembourg law (société
anonyme).
Principal Activities
The Company is the holding company of the ADO Properties Group. The Company's business is primarily
conducted by its operating subsidiaries. We specialize and focus on the purchase and management of income
producing multi-family residential buildings. Our investment and trading portfolio value as of December 31,
2019 was 3.7 billion. As of December 31, 2019, our property portfolio consisted of 16,255 residential units
with a total residential lettable area of 1,065,128 sqm, 1,382 commercial units (retail, office and other
commercial) with a total commercial lettable area of 162,205 sqm, 5,397 parking spaces and spaces for
storage, antennas, etc. Most of our residential units contain one or two rooms and have an average size of 65.5
sqm. As of December 31, 2019, our vacancy rate was 2.7% and 3.6% for our residential units and our
commercial units, respectively. The average monthly net rent per sqm was 7.39 and 10.04 for our residential
units and commercial units, respectively.
S-1


Major Shareholders
As of the date of this Prospectus, the Company's major shareholders are:
Number
Voting Rights
Name of the Shareholder
of Voting Rights
(in%)(1)
ADLER Real Estate Aktiengesellschaft(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14,692,889
20.45
Klaus Wecken(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,125,900
5.74
Fairwater Multi-Strategy Investment ICAV(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,969,292
5.52
Fortitudo Capital SPC(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,815,850
5.31
Free float . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45,241,682
62.98
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71,845,613
100.00
(1) The percentage of voting rights was calculated on the basis of the Company's registered share capital as of the date of this Prospectus.
(2) Indirect shareholding of ADLER Real Estate Aktiengesellschaft, as notified for April 1, 2020. ADLER Real Estate Aktiengesellschaft
is, as disclosed in its group notification, the controlling shareholder of ADO Group Ltd., which, in turn, directly holds the shares in
the Company.
(3) Direct and indirect shareholding of Klaus Wecken and Wecken & Cie., as notified for March 31, 2020. Pursuant to the shareholding
notification, BNP Paribas Securities Services S.C.A., Frankfurt branch, is holding Mr. Klaus Wecken's and Wecken & Cie.'s shares
in the Company in its role as settlement agent only, in the name, on behalf and for the account of and acting as proxy of Mr. Klaus
Wecken and Wecken & Cie. from the issue of the shares until the settlement of the voluntary public takeover offer.
(4) Direct shareholding of Fairwater Multi-Strategy Investment ICAV as notified for March 31, 2020, which is managed by Mirabella
Malta Limited and acting as AIFM and who holds the shares in and is acting in respect of the sub-fund Fairwater Real Estate
Opportunities Fund. Pursuant to the shareholding notification, BNP Paribas Securities Services S.C.A., Frankfurt branch, is holding
the shares that Fairwater Multi-Strategy Investment ICAV, which is managed by the AIFM Mirabella Malta Limited, holds in the
Company in its role as settlement agent only, in the name, on behalf and for the account of and acting as proxy of Fairwater Multi-
Strategy Investment ICAV, which is managed by the AIFM Mirabella Malta Limited, from the issue of the shares until the settlement
of the voluntary public takeover offer.
(5) Direct and indirect shareholding of Fortitudo Capital SPC as notified for March 31, 2020, who, on behalf and for the account of
Fortitudo Real Estate Opportunities Segregated Portfolio, holds the shares and has appointed Mezzanine IX Investors S.A. and Pruss
GmbH, a wholly-owned subsidiary of Mezzanine IX Investors S.A., respectively, to exercise voting rights over the shares and these
entities can vote on their own discretion. Pursuant to the shareholding notification, BNP Paribas Securities Services S.C.A., Frankfurt
branch, is holding Fortitudo Capital SPC's shares in the Company in its role as settlement agent only, in the name, on behalf and for
the account of and acting as proxy of Fortitudo Capital SPC from the issue of the shares until the settlement of the voluntary public
takeover offer.
No shareholder has control over the Company.
Board of Directors
The Company's board of directors (the "Board of Directors") consists of Dr. Peter Maser (Chairman
(Independent Director)), Thierry Beaudemoulin (Director), Dr. Ben Irle (Director), Florian Sitta (Director),
Arzu Akkemik (Independent Director), Dr. Michael Bütter (Independent Director) and Jörn Stobbe
(Independent Director).
Statutory Auditor
The Company appointed KPMG Luxembourg, Société cooperative ("KPMG"), with registered office at 39,
avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, as its statutory auditor (réviseur
d'entreprises agréé).
What is the key financial information regarding the Company?
The financial information contained in this Prospectus, other than where otherwise indicated, is taken or
derived from the ADO Properties Group's audited consolidated financial statements as of and for the fiscal
years ended December 31, 2019, December 31, 2018 and December 31, 2017 (the "Audited Consolidated
Financial Statements of ADO Properties Group"), each prepared in accordance with the International
Financial Reporting Standards as adopted by the European Union ("IFRS"), and the ADO Properties Group's
internal accounting and reporting system.
S-2


Summary statement of profit or loss data
For the year ended December 31,
2019
2018
2017
(audited)
(in thousand, unless
otherwise indicated)
Total revenue (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
112,509
112,857
92,678
Operating profit (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
613,920
499,342
463,554
Net profit (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
606,924
397,464
367,512
Earnings per share (in ) (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13.63
8.77
8.07
(1) Referred to as "gross profit" in the consolidated financial statements of the Company.
(2) Referred to as "results from operating activities" in the consolidated financial statements of the Company.
(3) Referred to as "profit for the period" in the consolidated financial statements of the Company.
(4) Referred to as "basic earnings per share" in the consolidated financial statements of the Company.
Summary statement of financial position data
As of December 31,
2019
2018
2017
(audited)
(in thousand)
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,396,465
4,170,173
3,518,263
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,698,445
2,197,282
1,831,493
Net financial debt (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
991,977
1,623,185
1,329,694
(1) Referred to as "net financial liabilities" in another part of this Prospectus.
Summary statement of cash flow statement data
For the year ended December 31,
2019
2018
2017
(audited)
(in thousand)
Net cash flows from operating activities (1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
88,764
103,933
86,313
Net cash flows from investing activities (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
269,061
(334,034)
(494,499)
Net cash from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,767
136,537
346,295
Change in cash and cash equivalents during the period . . . . . . . . . . . . . . . . . .
359,592
(93,564)
(61,891)
(1) Referred to as "net cash from operating activities" in the consolidated financial statements of the Company.
(2) Referred to as "net cash used in investing activities" in the consolidated financial statements of the Company.
On December 15, 2019, the Company has announced its decision to make a voluntary takeover offer for all
shares of ADLER Real Estate Aktiengesellschaft, a stock corporation (Aktiengesellschaft) under the laws of
Germany, with its seat in Berlin, its business address at Joachimsthaler Straße 34, 10719 Berlin, Germany, and
registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Charlottenburg,
Germany, under HRB 180360 B ("ADLER Real Estate" and, together with its consolidated subsidiaries, the
"ADLER Group") in the form of an exchange offer (the "Offer"). In connection with the Offer, the Company
has prepared pro forma consolidated financial statements, comprised of pro forma consolidated profit- or loss
data for the period from January 1, 2019 to December 31, 2019 and pro forma consolidated financial position
data as of December 31, 2019, supplemented by pro forma notes (the "Pro Forma Consolidated Financial
Information"). The purpose of the Pro Forma Consolidated Financial Information is to present the material
effects that a completion of the Offer would have had on and as of the aforementioned periods. The Pro Forma
Consolidated Financial Information is prepared solely for illustrative purposes. Due to its nature, the Pro
Forma Consolidated Financial Information is only descriptive of a hypothetical situation and is based on
assumptions and does not reflect the actual net assets, financial position and results of operations of the
Company.
S-3


Pro forma consolidated statement of profit or loss for the period from January 1, 2019 to
December 31, 2019
Pro Forma
ADO
ADO
consolidated
Properties ADLER
Group
Pro Forma
statement of
Group
Group (standalone)
Total
Adjustments profit or loss
(in thousand unless otherwise indicated)
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156,520 904,185
24
1,060,729
(21,327)
1,039,402
Results from operating activities . . . . . . . . . . . . .
613,920 469,008
(3,569)
1,079,359 (342,819)
736,540
Consolidated profit for the period . . . . . . . . . . . .
606,924 367,764
194,348
1,169,036 (568,772)
600,264
Net profit per share (in ) . . . . . . . . . . . . . . . . . . .
--
--
--
--
--
6.20
Net profit per share (diluted) (in ) . . . . . . . . . . .
--
--
--
--
--
6.01
Pro forma consolidated statement of financial position data as of December 31, 2019
Pro Forma
consolidated
ADO
statement of
Properties
ADLER
Pro Forma
financial
Group
Group
Total
Adjustments position data
(in thousand)
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,396,465 10,681,677 15,078,142 (4,095,344) 10,982,798
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,698,445
3,547,857
6,246,302 (2,191,233) 4,055,069
What are the key risks that are specific to the Company?
·
Our business is significantly dependent on our ability to generate earnings from rentals. Our rental income
and operating profit could particularly be negatively affected by a potential increase in vacancy rates.
·
Our ability to operate our business successfully relies on assumptions and contingencies that may prove
to be incorrect. Such assumptions and contingencies may prove to be inaccurate, either in part or as a
whole, in particular due to unexpected liabilities, incomplete or wrong assessment of markets, value
determinations and due diligence findings and challenges with respect to achieving anticipated synergies
and insufficient investment horizons.
·
We rely on our ability to identify potential real estate portfolio acquisitions in order to pursue our
investment strategies. We may not be able to identify all risks associated with any such acquisitions.
Assumptions could prove to be insufficient or incorrect and a successful integration of acquisitions may
not be achievable.
·
Our business is dependent on regional real estate markets and their liquidity, particularly Berlin, which
may be subject to adverse market developments. Fluctuation in the development of the currently high
demand and prices could make it difficult for us to conduct our business activities and to implement our
strategy to capture additional growth opportunities.
·
Our investments are in real estate and due to the potentially illiquid nature of the real estate market, we
may not be able to sell any portion of our portfolio or investments in a timely fashion, on favorable terms
or at all.
·
Property valuation is inherently subjective and uncertain and is based on assumptions which may prove
to be inaccurate or affected by factors outside of our control. The property valuation serves as a basis of
and is combined with other factors for our fair value model which, ultimately, could require downward
revisions of the current fair values of our investment properties.
·
In the event of a downturn or other developments in the real estate markets in Germany or a downturn in
the interest rate environment, the fair values of the properties in our property portfolio may decline,
which may have material adverse effects on the valuation of our property portfolio.
·
An increase in general interest rate levels may increase our financing costs, while the current economic
environment, characterized by relatively high values of our properties and the prices at which we are
able to sell our properties, may decrease.
·
German laws protecting residential tenants and existing restrictions on the rate of rental increases could
make it more difficult to increase the rents of residential units we own.
·
Our business is subject to the general legal environment in Germany. Any disadvantageous changes in
the legal environment, such as mandatory environmental modernization provisions, restrictions
regarding modernization measures or provisions (including taxes) that result in the incurrence of costs in
the event of a property sale, or disadvantageous changes to the Berlin Mietspiegel regulation, may be
detrimental to us.
S-4


·
The structure of the Company is mainly influenced by the general tax environment in Luxembourg,
Germany and further countries of the European Union (Netherlands, Denmark and Ireland) and changes
in the tax environment may increase our tax burden.
·
ADLER Real Estate is a real estate company that is exposed to a variety of risks that we believe are
comparable to the risks associated with our business activities. However, it cannot be ruled out that
ADLER Real Estate may be exposed to further, previously unrecognized risks, the realization of which
could also have a material adverse effect on the net assets, financial position and results of operations of
the Combined Group created through the Completion and Integration.
C ­ KEY INFORMATION ON THE SECURITIES
What are the main features of the securities?
Type, Class, ISIN
The summary relates to ordinary shares in dematerialized form of the Company with no nominal value;
ISIN: LU1250154413; German Securities Code (Wertpapierkennnummer, WKN): A14U78; Common
Code: 125015441; Trading Symbol: ADJ.
Nominal Value, Number of Securities
As of the date of this Prospectus, the share capital of the Company amounts to 89,088.56 and is divided into
71,845,613 ordinary shares in dematerialized form with no nominal value. All shares of the Company are fully
paid up. The subject-matter of this Prospectus is the listing (the "Listing") of the New Shares on the regulated
market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) with
simultaneous admission to the sub-segment thereof with additional post-admission obligations (Prime
Standard). This corresponds to the acceptance of the Offer for 66,404,915 shares of ADLER Real Estate, each
in exchange for 0.4164 New Shares, which were offered to the shareholders of ADLER Real Estate (each a
"ADLER Shareholder") as consideration for the Offer (the "Offer Consideration").
Currency
The Company's shares are denominated in Euro.
Rights Attached
The New Shares are fully fungible and rank pari passu in all respects with the existing shares of the Company.
Each share of the Company, including the New Shares, carries one vote at the general meeting of the Company
(the "General Meeting"). There are no restrictions on voting rights. All shares carry the same voting rights.
The New Shares grant full dividend entitlements as from January 1, 2019.
Seniority
Any claim for payment of shareholders are subordinated to all other securities and claims.
Restrictions of Transferability
The shares of the Company, including the New Shares, are freely transferable in accordance with the
Luxembourg law of April 6, 2013 on dematerialized securities. There are no restrictions on the transferability
of the Company's shares.
Dividend Policy
The Company aims to distribute an annual dividend of up to 50% of the annual cash flow from rental activities
("FFO 1") to the shareholders of the Company. FFO 1 is derived from the EBITDA from rental activities of
the Company for the respective periods, adjusted for the net cash interest and current income taxes. FFO 1 is a
customary performance indicator to evaluate the performance of the recurring operating profits of a real estate
company. The decision to distribute dividends from annual net profits is subject to a resolution by the General
Meeting, whereas the Board of Directors may, pursuant to the articles of association of the Company, also
declare interim dividends. Any future determination to pay dividends will be made in accordance with
applicable laws, and will depend upon, among other factors, the Company's results of operations, financial
condition, contractual restrictions and capital requirements. The Company's future ability to pay dividends
may be limited by the terms of any existing and future debt or preferred securities.
S-5


Where will the securities be traded?
On or about April 8, 2020, the Company intends to apply for admission of the New Shares to trading on the
regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse)
with simultaneous admission to the sub-segment thereof with additional post-admission obligations (Prime
Standard).
What are the key risks attached to the securities?
·
Future capital measures like the issuance of new shares from authorized capital, which currently amounts
to 750,000,000, the exercise of share options and any amendment to the capital structure to be resolved
by the General Meeting could lead to a significant dilution, thereby reducing the value of the
shareholding of the existing shareholders of the Company.
·
The share price and the trading volume of the shares of the Company could fluctuate significantly,
including due to disposals by any major or majority shareholder, which could, ultimately, result in
significant losses for shareholders of the Company.
·
The ability of the Company to distribute dividends is dependent on a variety of factors. The previous
dividend distributions, which amounted to 0.75, 0.60 and 0.45 per share for the fiscal years ended
December 31, 2018, 2017 and 2016, respectively, are no indication for future dividend distributions.
Additionally, the dividend policy of the Company may change in the future.
D ­ KEY INFORMATION ON THE OFFER OF SECURITIES TO THE PUBLIC AND ADMISSION
TO TRADING ON A REGULATED MARKET
Under which conditions and timetable can I invest in this security?
Offer Conditions
Not applicable. This Prospectus does not relate to an offering of shares.
Expected Timetable of the Offer
Not applicable. This Prospectus does not relate to an offering of shares.
Admission to Trading
On or about April 8, 2020, the Company intends to apply for admission of the New Shares to trading on the
regulated market segment (Regulierter Markt) of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse)
with simultaneous admission to the sub-segment thereof with additional post-admission obligations (Prime
Standard). The listing approval for the New Shares is expected to be granted on or about April 8, 2020. The
trading on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) is currently expected to commence on
April 9, 2020.
Dilution
Not applicable. This Prospectus does not relate to an offering of shares.
Total Expenses
The expenses related to the Listing are expected to total approximately between 2 million and 2.5 million
and will be borne by the Company.
Expenses Charged to Investors
No expenses will be charged to investors by the Company or its financial advisors.
Why is this prospectus being produced?
Reasons for the Admission to Trading
The Company intends to list the New Shares on the regulated market segment (Regulierter Markt) of the
Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) and, simultaneously, to the sub-segment thereof
with additional post-admission obligations (Prime Standard) to provide the shareholders of ADLER Real
Estate who have accepted the Offer with more liquid securities.
Use of Proceeds
Not applicable. This prospectus does not relate to an offering of shares. Accordingly, there are no proceeds to
the Company or any shareholder of the Company.
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