alstria office REIT-AG

Capital/Financing Update • Jul 28, 2009

News Details

Corporate | 28 July 2009 17:55

alstria office REIT-AG: alstria refinanced EUR 68 million and reduces overall cost of debt

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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* Two non recourse loans signed and funded
* Total refinancing of EUR 68 million and additional CAPEX line of
EUR 8 million secured by four properties located in Hamburg, Mannheim and
Wiesbaden
* Average total cost of debt on a corporate level stands at 4.4%

HAMBURG, July 28, 2009 - alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
which is solely focused on acquiring, owning and managing office real
estate in Germany, today reports the completion of two debt refinancings of
around EUR 76 million. EUR 68 million have been used to repay the main
syndicated loan. The additional amount of EUR 8 million is a CAPEX line
which will be used for the funding of an ongoing refurbishment.

The two new credit facilities, provided by two German financing
institutions, are secured on a non recourse basis with a five year
maturity. The average cost of debt of these two new credit facilities
stands at 3.3%, reducing the overall company cost of debt to 4.4% (as of
07/2009) from 4.8%. The properties securing the loans are located in
Hamburg, Mannheim, and Wiesbaden. The properties have a weighted average
lease length of 11.4 years in line with the average lease length of
alstria's portfolio.

This refinancing is part of the overall strategy put in place by the
company in order to manage the overall balloon payment of its main facility
which matures at the end of 2011. This strategy includes the renegotiation
of the LTV covenants which has occurred in the first quarter 2009, selected
assets sales, and selected non recourse financing of assets.

'These two new deals reflect the implementation of alstria's strategy set
up in summer 2007. Since then, we have paid off almost 20% of our main
syndicated loan facility from new non recourse loans and selected asset
sales. In line with our belief that deleveraging can be highly value
destructive if executed too fast using radical measures like capital
increases, we are strengthening our balance sheet step by step,
safeguarding our shareholder value in the process,' said Olivier Elamine
CEO of alstria. 'In the current market environment, the ability of alstria
to refinance at optimum conditions with multiple lenders demonstrates the
strength of our assets, and the quality of the underlying cash flow. We are
convinced that, coupled with selected asset disposals, this is the right
way to prepare the company for future opportunities that will arise in the
market'.

About alstria:

alstria office REIT-AG (alstria) 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 and was
converted into the first German REIT in October 2007. Its headquarters are
based in Hamburg.

alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its current portfolio comprises 89 properties
with an aggregate lettable space of approximately 943,000 sqm and is valued
at approximately EUR 1.8 billion.

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

Disclaimer:

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.

Media:
Christian Falkowski
Phone: +49 - 40 - 226 341 340
Email: pr@alstria.de

Investor Relations:
Brigitte Büchner
Phone: +49 - 40 - 226 341 319
Email: ir@alstria.de

28.07.2009 Financial News transmitted by DGAP

Language: English
Issuer: 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 Berlin, München, Hamburg, Stuttgart

End of News DGAP News-Service

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