Fair Value REIT-AG

Regulatory Filings • Apr 9, 2015

News Details

Corporate | 9 April 2015 07:30

Fair Value REIT-AG implements expansion strategy by growing direct investment portfolio

Fair Value REIT-AG / Key word(s): Real Estate

2015-04-09 / 07:30

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Fair Value REIT-AG implements expansion strategy by growing direct investment portfolio

– Direct purchase of previously indirectly held property in Cologne

– Property fully rented long-term

– Around 11 % increase in direct holdings to a total of 14 % of portfolio

Munich, April 9, 2015 – Fair Value REIT-AG (“Fair Value”) has successfully advanced its growth strategy further, transferring a fully rented property in Cologne into its portfolio of direct holdings. The company has purchased a warehousing and exhibition hall with office premises in Cologne, Marconistrasse 4-8, for EUR 3.3 million with effect as of March 31, 2015. This price stands around 10 % below the property’s market value surveyed as of December 31, 2014. The property offers a rentable building space of 9,640 square metres and achieves annual rental income of currently EUR 365 thousand. The property is rented for a further eight years to one of Germany’s leading wood merchants. The building’s rooftops are leased for a further 18 years to a photovoltaic plant operator.

The property’s seller is a subsidiary of Fair Value REIT-AG, in which Fair Value holds an 80% interest. This company can be quickly liquidated following the sale of this real estate asset, which will lead to around EUR 120 thousand of annual general administrative cost savings.

Frank Schaich, CEO of Fair Value REIT-AG, explains the background: “The transfer of this property in Cologne into our portfolio of direct holdings allows us to not only improve our operating earnings but also reduce our Group’s complexity. This most recent investment carries a gross rental yield of 11 % per annum, thereby meeting our investment criteria to a high degree. Incidental purchase costs are low due to our interest in the seller, and they are covered by the market valuation of the property of around EUR 3.7 million. It also boosts the level of our direct investments by around 11 % to reach 14 % of our current portfolio. Further transfers to our portfolio direct holdings will follow over the coming months.”

Contact

Fair Value REIT-AG

Frank Schaich

Tel. +49 (0) 89-9292815-10

Fax +49 (0) 89-9292815-15

e-mail: schaich@fvreit.de

Corporate Profile

Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing, property management and sale of commercial properties in Germany. At the core of its investment activities are retail and office properties in German regional centres.

As of December 31, 2014, Fair Value’s share of the total portfolio of 43 properties (previous year 49 properties) amounted to around EUR 281 million (previous year EUR 312 million). This portfolio had an occupancy rate of 91.5% (previous year 93.3%). As of December 31, 2014, the weighted remaining term of the leases was 5.0 years, unchanged to December 31, 2014. Around 52% of the potential rent relates to retail floor space, 37% to office space and 11% to other types of use.

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Language:	English
Company:	Fair Value REIT-AG
	Leopoldstraße 244
	80807 München
	Germany
Phone:	+49 (0)89 9292 815-01
Fax:	+49 (0)89 9292 815-15
E-mail:	info@fvreit.de
Internet:	www.fvreit.de
ISIN:	DE000A0MW975
WKN:	A0MW97
Indices:	RX REIT All Share Index, RX REIT Index
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart

End of News	DGAP News-Service

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