AI Terminal
alstria office REIT-AG
M&A Activity • Apr 24, 2017
31_rns_2017-04-24_5aa25d7e-7b98-41f4-839a-021bd038573b.html
M&A Activity
Open in ViewerOpens in native device viewer
News Details
Corporate | 24 April 2017 20:42
alstria office REIT-AG: Acquisition of a portfolio of twelve office buildings in Hamburg, Düsseldorf and Berlin
DGAP-News: alstria office REIT-AG / Key word(s): Acquisition
24.04.2017 / 20:42
The issuer is solely responsible for the content of this announcement.
Press release
Acquisition of a portfolio of twelve office buildings in Hamburg, Düsseldorf and Berlin
– alstria acquires portfolio of twelve office buildings located in Hamburg, Düsseldorf and Berlin
– Acquisition is accretive to the FFO per share, a full year impact on revenues of EUR 9.9 m and FFO of around EUR 7.3 m expected
– Vacancy of 21.0% offers potential for further value creation
Hamburg, April 24, 2017 – alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the acquisition of an office portfolio from Office First.
Portfolio perfectly matches alstria’s acquisition criteria
Pursuant to a purchase agreement dated April 24, 2017, alstria office REIT-AG acquires an office property portfolio for a total consideration (all-in-cost) of EUR 168.5 m (EUR 1,590 per sqm, yield on cost of 5.9%). The twelve properties, located in Hamburg, Düsseldorf and Berlin are generating a passing rent of around EUR 9.9 m per annum and have a weighted average unexpired lease term (WAULT) of 3.4 years. The portfolio perfectly matches alstria’s acquisition criteria regarding its location, average property size and asset management requirements. The vacancy in the portfolio of 21.0% will allow alstria to further improve the cashflow profile going forward.
Financing by available cash and bank debt
The portfolio will be financed with EUR 108.5 m of existing cash and EUR 60.0 m of new debt which represents a LTV of around 36% in line with the Company’s mid-term deleveraging target.
Acquisition increases alstria’s FFO by EUR 7.3 m p.a.
The favorable fundamentals of the transaction are expected to increase alstria’s funds from operations (FFO) by approximately EUR 7.3 m on a full-year basis. The closing of the transaction, which is subject to customary conditions precedents, is expected to take place towards mid-2017.
“This transaction allows us to re-invest the proceeds of the disposals that were made last year”, says Olivier Elamine, CEO of alstria. In a tensed investment market in which we operate, this acquisition demonstrates the ability of the Company to continue sourcing and executing attractive opportunities”.
Contact:
alstria office REIT-AG
Ralf Dibbern
Head of Investor Relations & Public Relations
Bäckerbreitergang 75
20355 Hamburg
Phone: +49 (0) 40 226 341 329
Email: [email protected]
More information on:
About alstria:
alstria office REIT AG is the leading real-estate operator focusing solely on German office property in selected German markets. Our strategy is based on the ownership and an active management of our properties throughout their entire life cycle, strong added-value services to our customers and deep knowledge of the markets in which we operate. alstria strives for sustainable long-term value creation while taking advantage of short-term arbitrage of inefficiencies in the real estate markets. The portfolio comprises 108 buildings with a lettable area of 1.5 million sqm and a total portfolio value of EUR 3.0 billion.
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an offer to buy any shares. 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.
24.04.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
| Language: | English |
| Company: | alstria office REIT-AG |
| Bäckerbreitergang 75 | |
| 20355 Hamburg | |
| Germany | |
| Phone: | 040-226 341 300 |
| Fax: | 040-226 341 310 |
| E-mail: | [email protected] |
| Internet: | http://www.alstria.de |
| ISIN: | DE000A0LD2U1 |
| WKN: | A0LD2U |
| Indices: | MDAX, EPRA, German REIT Index |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |