alstria office REIT-AG

M&A Activity • Dec 12, 2007

News Details

Corporate | 12 December 2007 14:32

alstria office REIT-AG agrees on the acquisition of a German office real estate portfolio

alstria office REIT-AG / Miscellaneous

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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alstria office REIT-AG agrees on the acquisition of a German office real
estate portfolio

Total acquisition cost of approximately EUR 111.3 m, annual passing rental
income of EUR 7.7 m
Exit tax REIT benefit used in the deal
Leading German corporation acquired as new key tenant
Portfolio of 13 properties essentially used as office properties across
Germany

Hamburg, December 12, 2007 – alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1)

alstria office REIT-AG (alstria office), an internally managed Real Estate
Investment Trust (REIT) solely focused on acquiring, owning and managing
office real estate in Germany, announces the signature of a purchase
agreement with a leading German corporation for the acquisition of a
portfolio of 13 properties essentially used as office properties. Both
seller and alstria agreed not to disclose the name of the seller.

The assets will be acquired for an All-In cost of approximately EUR 111.3
m (EUR 1,500 per sqm) and will generate a passing rent of approximately EUR
7.7 m per annum (average of EUR 9 per sqm per month). The closing of the
transaction is expected to occur in the course of 2008, and is still
subject to cartel office clearance. The transaction will be financed
through the existing credit facility.

The properties are located all across Germany. The total lettable area is
of approximately 74,500 sqm. The seller remains as a tenant in the
properties and will rent approximately 66 % of the space on five to ten
year leases; approximately 20.5 % is leased to third party tenants and the
remaining 13.5 % is vacant allowing additional upside potential through
active management.

'This transaction demonstrates the ability of alstria to offer attractive
terms to German corporations willing to unlock the capital tight in their
office real estate. Exit tax benefit has again allowed both parties to
improve the economics demonstrating the unique competitive advantage of
REITs', says Olivier Elamine, CEO of alstria.

'The acquisition of this portfolio presents a positive carry between real
estate initial yields and the marginal cost of debt highlighting the
ability of alstria to execute accretive deals' added Alexander Dexne, CFO
of alstria, 'it will have a positive impact on our FFO and thus on our
dividend for 2008.'

alstria was advised by Freshfields Bruckhaus Deringer.

About the company
alstria office REIT-AG is an internally managed Real Estate Investment
Trust (REIT) solely focused on acquiring, owning and managing office real
estate in Germany. alstria was founded in January 2006, its headquarters
are based 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 approximately
770,000 sqm and is valued at approximately Euro 1.6 billion. alstria
intends to expand its portfolio significantly in the upcoming years as part
of a sustainable growth strategy based on selective investments and active
asset and portfolio management as well as on establishing and maintaining
good relationships with its key customers and decision makers.

For further information, please visit: www.alstria.com

This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. The securities have already been sold.

As far as this press release contains forward-looking statements with
respect to the business, financial condition and results of operations of
alstria office REIT-AG (alstria), these statements are based on current
expectations or beliefs of alstria's management. These forward-looking
statements are subject to a number of risks and uncertainties that could
cause actual results or performance of the Company to differ materially
from those reflected in such forward-looking statements. Apart from other
factors not mentioned here, differences could occur as a result of changes
in the overall economic situation and the competitive environment –
especially in the core business segments and markets of alstria. Also, the
development of the financial markets and changes in national as well as
international provisions particularly in the field of tax legislation and
financial reporting standards could have an effect. Terrorist attacks and
their consequences could increase the likelihood and the extent of
differences.

alstria undertakes no obligation to publicly release any revisions or
updates to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

Contact
Dr. Charlotte Brigitte Loos
Manager Public Relations & Investor Relations
Tel.: +49 – 40 – 226 341 329
Fax: +49 – 40 – 226 341 310
Email: pr@alstria.de

12.12.2007 Financial News transmitted by DGAP

Language: English
Issuer: alstria office REIT-AG
Fuhlentwiete 12
20355 Hamburg
Deutschland
Phone: +49 (0)40 226 341 300
Fax: +49 (0)40 226 341 310
E-mail: info@alstria.de
Internet: www.alstria.de
ISIN: DE000A0LD2U1
WKN: A0LD2U
Indices: SDAX, EPRA, German REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart

End of News DGAP News-Service

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