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Vonovia SE
Share Issue/Capital Change • Apr 26, 2023
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Share Issue/Capital Change
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Ad-hoc | 26 April 2023 06:57
Vonovia SE Agrees to Sell €1.0bn Minority Common Equity Participation in its “Südewo” portfolio.
Vonovia SE / Key word(s): Disposal/Joint Venture
Vonovia SE Agrees to Sell €1.0bn Minority Common Equity Participation in its “Südewo” portfolio.
26-Apr-2023 / 06:57 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Bochum, April 26, 2023 – Vonovia announces the sale of a minority common equity participation in its “Südewo” portfolio to Apollo, on behalf of its affiliated and third party insurance clients and other long-term investors, for €1.0bn.
The transaction values the Südewo portfolio at €3.3bn on a debt free and cash free basis, implying a discount below 5% to its fair value as of December 31, 2022, and below 6% to the fair value as of June 30, 2022.
Vonovia retains a long-term call-option to repurchase the participation at an IRR of 6.95%-8.30% (including dividends received) without an obligation to exercise the option. Vonovia will continue to control, operate, and consolidate the portfolio, which comprises more than 21k residential units in locations across the state of Baden-Württemberg. Closing of the transaction is expected to occur around May 31, 2023 and is subject to further conditions such as the absence of material adverse changes and regulatory clearances.
With the proceeds, Vonovia generates ~50% of the targeted €2bn free cash flow from asset disposals to which the company committed for 2023E. The transaction has no material impact on Vonovia’s near term Group FFO per share or NTA per share. Vonovia intends to use the proceeds for liability management and to cover upcoming debt maturities, with the company’s LTV expected to reduce by 1 percentage point to 44.1% and Net debt / EBITDA by 0.3x to 15.5x.
Contact:
Vonovia SE
Rene Hoffmann
Head of Investor Relations
Telephone: +49(0)234 314 – 1629
End of Inside Information
26-Apr-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
| Language: | English |
| Company: | Vonovia SE |
| Universitätsstraße 133 | |
| 44803 Bochum | |
| Germany | |
| Phone: | +49 234 314 1609 |
| Fax: | +49 234 314 2995 |
| E-mail: | [email protected] |
| Internet: | www.vonovia.de |
| ISIN: | DE000A1ML7J1 |
| WKN: | A1ML7J |
| Indices: | DAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1616959 |
| End of Announcement | EQS News Service |