alstria office REIT-AG

Regulatory Filings • Jan 26, 2011

News Details

Corporate | 26 January 2011 17:44

alstria office REIT-AG: alstria acquires two properties in Hamburg for EUR 20 million

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

26.01.2011 / 17:44

Press release

alstria acquires two properties in Hamburg for EUR 20 million

* alstria invests remaining funds from capital increase
* Properties in the city centre offer significant value enhancement
potential
* Asset manager argoneo coordinates transaction activities for seller

HAMBURG, January 26, 2011 - alstria office REIT-AG, an internally managed
Real Estate Investment Trust (REIT), has agreed to acquire two office
buildings in inner city locations in Hamburg for a total transaction cost
of around EUR 20 million in an off-market transaction. The assets offer
significant value creation potential, as the vacancy rate of 24% provides
scope for active asset management measures. Asset manager argoneo, who has
managed the properties since 2007, coordinated the transaction process for
the seller.

The buildings, which have a combined lettable area of around 9,400 sqm, are
multi-tenant properties with a weighted average lease length of
3.2 years. They currently generate a total rental income of around
EUR 1.2 million per annum.

The transaction will be financed by EUR 9 million of equity and a new five
year non-recourse loan of EUR 14 million. The loan also includes a
EUR 2.5 million capex line. The transfer of properties is expected to
happen at the end of the first quarter 2011.

'This second transaction has allowed us to fully invest the proceeds of our
September capital increase and to demonstrate our ability to source and
execute attractive transactions in the German office market', said Olivier
Elamine, CEO of alstria office REIT-AG. 'While the sale-and-leaseback
transaction announced in November 2010 strengthened alstria's sustainable
cash flow, this last transaction offers considerable growth potential,
which we are looking forward to unlock.'

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 71 properties with an aggregate lettable space of approx. 810,000
sqm. 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.

About argoneo:
argoneo is an asset management company headquartered in Frankfurt am Main.
It operates throughout Europe and has offices in Berlin, Hamburg, Munich,
Paris, and Madrid. Engaged as a pure service provider by various
institutional investors, argoneo manages one of the largest asset
management portfolios in the German commercial real estate market as well
as real estate in European cities and economic hubs.

For further information, please see:
www.alstria.com
alstria.blogspot.com
www.twitter.com/alstria_REIT
www.argoneo.com

Contact alstria office REIT-AG:
Ralf Dibbern
IR/PR
Phone: +49 (0) 40 / 226 341-329
Email: ir@alstria.de

Contact argoneo:
Anne Tischer
Corporate Communications
Argoneo Real Estate GmbH
Phone: +49 69 244334 112
Email: corporate.communications.consultant@argoneo.com

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.

End of Corporate News

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26.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Hamburg, München, Stuttgart

End of News DGAP News-Service

110118 26.01.2011