PORR to Subscribe for UBM Hybrid Capital Worth EUR 56.4 Million
Construction company PORR AG announced its intention to subscribe to hybrid capital from UBM Development AG amounting to EUR 56.4 million. The move aims to strengthen the long-standing partnership between the two firms.
Vienna, Austria – PORR AG, a construction company, has announced its plan to subscribe to hybrid capital from UBM Development AG valued at EUR 56.4 million. The company’s supervisory board has approved the subscription, which is set to terms aligned with UBM's recent Green Hybrid Bond issuance for international investors.
The subscription is intended to bolster the operational cooperation between PORR and UBM, firms that have partnered for decades. This collaboration has historically benefited both parties by optimizing their respective business strategies. PORR develops and constructs numerous projects for UBM, while UBM, in turn, distributes PORR LIVING projects.
Karl-Heinz Strauss, CEO of PORR, stated that closer collaboration is intended, especially given evolving market conditions. He highlighted significant potential in developing affordable housing and distributing the company’s PORR LIVING solutions. This brand focuses on building apartments using prefabricated methods at an approximate construction cost of EUR 2,000 per square meter.
This capital injection is expected to reinforce the operational synergy between the two companies. Their long-standing partnership has proven mutually beneficial, and this investment underscores a commitment to future joint ventures, particularly within the housing sector.