VIC Properties announces new ownership and strengthened financial structure plans

Lisbon, 5 May 2023. VIC Properties S.A. (“VIC Properties”, “VIC”, “Company”), one of the largest residential real estate developers in Portugal, today announces that a group led by institutional investors and the existing VIC Management Team, has acquired the Company in a transaction with a total enterprise value of more than €670 million from Aggregate Holdings S.A. (“Aggregate”) (the “Transaction”). 

As previously announced on the 17^th March 2023, the Transaction provides VIC Properties with a significantly strengthened and more flexible financial structure. It demonstrates the long-term commitment of the new investors, led by AlbaCore Capital Group, Mudrick Capital Management, L.P. and Owl Creek Asset Management, L.P., to the Portuguese residential market and their confidence in the existing VIC Management Team to lead VIC Properties into a new growth phase.

As part of its new chapter, VIC Properties will receive new funding to continue and further accelerate the development of its residential projects in Lisbon and in the region of Comporta and Melides.

VIC Properties’ new shareholders alongside its Management Team, led by Chief Executive Officer João Cabaça, will continue to work very closely with the various relevant stakeholders in order to develop new residential properties across its existing and future projects, a clear commitment in addressing the pressing need for new housing in Portugal.

The Transaction also included a consent solicitation exercise for the holders of VIC Properties’ €250 million 3.00 percent secured Pre-IPO Convertible Bonds due 2025 (ISIN:XS1964739715) (the “Bonds”) to approve certain amendments, including releasing Aggregate from its existing guarantee and any future obligations related to the Bonds and permitting additional new money financing to be provided by the post-sale group’s stakeholders. The results of the consent solicitation demonstrated that holders representing more than 92% in aggregate outstanding nominal amount of the Bonds voted in favour of the Transaction.

About VIC Properties:

VIC Properties is a leading Portuguese real estate developer focused on the development of new residential offering. Focused on the undersupplied Portuguese residential real estate market, it combines unique in-house local development expertise, capital market knowledge and wide experience in large development schemes. Headquartered in Lisbon, VIC Properties is a fully integrated real estate platform covering the entire construction value chain.

About AlbaCore Capital Group

Headquartered in London, AlbaCore is an independent European credit firm specialising in creative private solutions and opportunistic credit investing in mid-to-large cap performing companies. AlbaCore was formed in 2016 to focus on European private debt and opportunistic credit investments. AlbaCore relies on fundamental research and a relative value approach that aims to drive capital preservation and attractive upside. The Firm manages $9.5 billion in AUM as at 28 February 2023 and has invested $25 billion since its inception.

About Mudrick Capital Management, L.P.

Mudrick Capital Management, L.P. is an institutional investment firm specializing in opportunistic credit investing in the U.S. and European credit markets with offices in New York and London. Mudrick manages approximately $3.4 billion as of January 31, 2023 on behalf of a diverse group of sophisticated global institutional investors.

About Owl Creek Asset Management, L.P.

Owl Creek Asset Management, L.P. is an investment advisory firm based in New York. It primarily employs an event-driven and fundamental value long/short investment strategy in equity and debt markets across the globe. The firm was founded in 2001 and is registered as an investment adviser with the U.S. Securities and Exchange Commission.

For Portuguese media enquiries:

Cunha Vaz & Associados

Hugo Real | hr@cunhavaz.com | +351 927 997 948

Sofia Arnaud | sa@cunhavaz.com | +351 939 743 104

Pedro Martins | pm@cunhavaz.com | +351 916 528 356

Important Notice

This announcement contains statements about VIC that are or may be forward looking statements. All statements other than statements of historical facts included in this announcement may be forward looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "goals", "should", "would", "could", "continue", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "hopes", "projects" or words or terms of similar substance or the negative thereof, are forward looking statements.

Such forward looking statements involve risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. VIC disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law or regulation.