alstria office REIT-AG

M&A Activity • Nov 15, 2010

News Details

Corporate | 15 November 2010 07:27

alstria office REIT-AG: alstria enters sale and leaseback transaction with Württembergische Lebensversicherung AG

alstria office REIT-AG / Key word(s): Miscellaneous

15.11.2010 07:27

alstria enters sale and leaseback transaction with Württembergische
Lebensversicherung AG

* Office complex in Karlsruhe to be acquired by alstria
* Württembergische Lebensversicherung AG to lease back the asset
* FFO increases by EUR 3 million p.a.

HAMBURG, November 15, 2010 - alstria office REIT-AG, an internally managed
Real Estate Investment Trust (REIT), has agreed to acquire an office
complex located in Karlsruhe. The asset will be leased back by the seller
under a 15 years lease, securing Württembergische Lebens-versicherung AG's
commitment to Karlsruhe for the long term. Württembergische
Lebensversicherung AG (S&P Rating: BBB+/stable) is one of the leading life
insurance companies in Germany and part of the W&W-Group, which has more
than 6 million customers and ranks among the Top 10 German insurance
groups.

The total transaction costs to alstria are around EUR 36.2 million . The
office complex which is located in the city centre next to the Karlsruhe
train station develops around 30,000 sqm of lettable area. The transfer of
property and the start of the leaseback period are expected to happen in
the course of the first quarter 2011.

This transaction will have a positive impact of around EUR 3 million on
alstria's Funds From Operations on a full year basis. The FFO increase
results from the net rental income expected from the asset, as well as the
interest saving on the main syndicated loan facility of the company. This
will translate in an increase of FFO of EUR 0.049 per share, which compares
with the FFO dilution following the recent 10% capital increase of EUR
0.044 per share.

'This transaction allows us to add another prime client to alstria's
portfolio and reinforce our position in Southern Germany through a long
term leased asset', said Olivier Elamine, CEO of alstria office REIT-AG.
'It also demonstrates alstria's ability to originate and execute accretive
acquisitions, and to sustainably increase value for all its shareholders.
While we have only invested parts of the proceeds from the recent capital
increase, this transaction already allows us to show FFO accretion. Further
transactions will only improve our position.'

About alstria:
alstria office REIT-AG is an internally managed Real Estate Investment
Trust (REIT) focused solely on acquiring, owning and managing office real
estate in Germany. alstria was founded in January 2006 and was converted
into the first German REIT in October 2007. Its headquarters are in
Hamburg. alstria office REIT-AG owns a diversified portfolio of properties
across attractive German office real estate markets. Its current portfolio
comprises 70 properties with an aggregate lettable space of approx. 780,000
sqm and is valued at approximately EUR 1.4 bn. The alstria office REIT-AG
strategy is based on active asset and portfolio management as well as on
establishing and maintaining good relationships with key customers and
decision makers. alstria focuses on long-term real estate value creation.

For further information, please see:
www.alstria.com
alstria.blogspot.com

Ralf Dibbern
Tel.: +49 - 40 - 226 341 329
Email: ir@alstria.de

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Language: English
Company: alstria office REIT-AG
Bäckerbreitergang 75
20355 Hamburg
Deutschland
Phone: 040-226 341 300
Fax: 040-226 341 310
E-mail: info@alstria.de
Internet: http://www.alstria.de
ISIN: DE000A0LD2U1
WKN: A0LD2U
Indices: SDAX, EPRA, German REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Hamburg, München, Berlin, Stuttgart

End of Announcement DGAP News-Service

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