- VastNed O/I German portfolio consists of five properties located in Dusseldorf and Frankfurt
- Total investment volume of EUR 89 m
- Short-term lease and high vacancy offer significant potential
Hamburg, July 6, 2011 - alstria office
REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT,
focused solely on acquiring, owning and managing office real estate in Germany,
is announcing that it has agreed on the acquisition of a value-add property
portfolio fromVastNed O/I.
The VastNed O/I portfolio will be acquired
for a total base consideration (AIC) of approximately EUR 89 m and currently generates
a passing rent of around EUR 6.8 m per annum, reflecting an initial yield on
cost of around 7.6%. The rental income of the portfolio will drop to EUR 4.5 m
in 2012, following the termination of a number of existing leases. The total
vacancy rate in the portfolio as of the 1st of January 2012 will be
41%.
'Following the execution of this
transaction, we will have invested the funds raised in the last capital
increase, in line with our announcement in March', said Olivier Elamine, CEO of
alstria. 'We think it's the right time to take up some more operational risk
and benefit from the strong tenant demand supported by the sustainable growth
of the German economy. The assets we have acquired offer substantial value
creation potential, which will be unlocked by alstria's proven asset management
expertise.'
The closing of the transaction is expected
to take place within the third quarter of 2011. Given alstria's current cash on
hand the transaction will be financed all equity for the time being. It will be
refinanced in a second step in line with the company's communicated financial
policy.
VastNed O/I German Portfolio overview as of
January 1, 2012:
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.
The company owns a diversified portfolio of
properties across attractive German office real estate markets. Its
current portfolio comprises 79 properties with an aggregate lettable space
of approx. 856,000 sqm and is valued at approximately EUR 1.5 bn. alstria
office REIT-AG's 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 contact:
Ralf Dibbern, IR/PR
Phone: +49 (0) 40 / 226 341-329
Email: rdibbern@alstria.de
www.alstria.com
www.alstria.blogspot.com
www.twitter.com/alstria_REIT
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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