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Covivio — M&A Activity 2014
Jun 20, 2014
1222_iss_2014-06-20_3313105a-84da-4963-a515-b17d3fee4a51.pdf
M&A Activity
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PRESS RELEASE
Paris, June 20, 2014
Foncière des Régions continues to strengthen its positioning on the German residential market
Acquisitions of 3,400 residential units in Berlin and in Dresden
Foncière des Régions, via Immeo AG, signed a purchase agreement for a portfolio of 3,400 residential units located in Berlin and in Dresden for approximately €240 million, fees and taxes included (€144 million, Group share). It represents an average value of about €1,200 per sq.m. Generating €15 million of annualized rent, this portfolio will generate an immediate gross yield of 6.3%.
This acquisition, which should be finalized by late July 2014, will be financed in part through bank debt and in part through a capital increase of Immeo AG.
With this transaction, Foncière des Régions confirms its strategy to strengthen its positioning on the German residential sector. A promising market in terms of residential property, Germany has value creation potential which is reflected in the regular increase of rents at constant scope and capital gains in the long term. Operating in this market since 2005 with a high-quality local team, Foncière des Régions aims to diversify the geographic location of its operations by strengthening its presence in dynamic and attractive cities, such as Berlin, Dresde and Leipzig.
Investor Relations Philippe Le Trung Tel.: + 33 (0)1 58 97 52 04 [email protected]
Press Relations Géraldine Lemoine Tel.: + 33 (0)1 58 97 51 00 [email protected]
Foncière des Régions, real estate partner
As a partner in corporate real estate strategy, we at Foncière des Régions develop long-term and innovative real estate solutions alongside our customers. These solutions have a double objective: enhance the value of existing urban real estate assets and develop the real estate of tomorrow.
Foncière des Régions has approximately €10 billion in real estate assets in Group share (€16 billion in total share) leased primarily to key accounts who are leaders in their respective industries (Suez Environnement, Thales, Dassault Systèmes, Orange, Edf, IBM, Eiffage, etc.). This culture of responsible partnership is based on key values and know-how: vision and expertise.
Foncière des Régions shares are listed in compartment A of Euronext Paris (FR0000064578 - FDR); they are SRD-eligible, and are included in the MSCI, BF120, Euronext IEIF "SIIC France", CAC Mid100, in the benchmark European real estate "EPRA" and "GPR 250" indices, as well as in the FTSE4 Good, DJSI World and NYSE Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20) ethics indices.
Foncière des Régions is rated BBB-/Stable by Standard and Poor's.