Ad-hoc | 14 December 2007 17:52
Fair Value REIT-AG / Miscellaneous
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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• Portfolio adjusted to secure now-obtained REIT status
• Sale proceeds of at least € 10 million to be used for investments in
offices and logistics premises
Munich, December 14, 2007 - Fair Value REIT AG today sold its majority
interest in BBV Immobilien-Fonds Nr. 8 GmbH & Co. KG (BBV 08 KG) with
effect from December 1, 2007. The main reason for this sale is the fact
that reversal cannot be ruled out for the sale of a nursery home which was
sold at the start of November 2007 as part of BBV 08 KG's portfolio, which
otherwise comprises retail premises. As this nursery home could possibly be
qualified as a residential property transferring it back to BBV 08 KG could
have endangered Fair Value's status as a REIT.
This transaction was won by the highest-bidding IC Immobilien Holding AG
with its registered office in Unterschleißheim. The fixed purchase price
component of € 10 million is around 3% higher than the acquisition price
paid when the interest was acquired. In addition, a variable price
component was agreed: in so doing, Fair Value enjoys an 80% participation
in the performance of the interest that exceeds the fixed price plus a
minimum return on the fixed price for the acquiring party of 7% p.a. The
latest settlement date for the variable remuneration is December 31, 2009,
and the calculation also will include non-realized changes in value.
By selling this fund participation, the Managing Board is also continuing
its strategy of focusing on the office and logistics segments in future by
restructuring the portfolio and making new acquisitions. The income from
the sale of the interest will be used accordingly.
At the end of December 2007 ownership is scheduled to be transferred for
the directly acquired portfolio of 33 commercial properties in
Schleswig-Holstein. These are mostly used as bank branches and this takes
the portion of the portfolio's rent generated from retail properties down
from 53% to 41%, whereas the proportion of rent from offices increases from
32% to 45%.
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Information and Explaination of the Issuer to this News:
Company profile
Munich-based Fair Value REIT-AG focuses on the acquisition, rental,
property management and sale of commercial properties in Germany. Its
investment activities focus primarily on offices, logistics and retail
properties in German regional centers. As a REIT-AG, Fair Value benefits
from the exit tax privilege when making purchases, and it is exempt from
corporation and trade tax. Fair Value's USP is that – in addition to
investing directly in real estate – it also acquires interests in
closed-end real estate funds.
Fair Value currently participates in a highly diversified portfolio of 49
properties with a total rental area of 422,503 m² and a market value of
around EUR 561 million (Fair Value's interest in this portfolio currently
totals around EUR 226 million). In addition, Fair Value has secured a
portfolio of 33 commercial properties mostly used as bank branches with a
rental area of 45,438 m² via a direct acquisition and an office building
currently being constructed with a rental area of 4,659 m², with purchase
prices totaling around € 64.3 million. A high economic rental level of more
than 96% in terms of the total possible rent ensures sustained income.
Investor & Media Relations
cometis AG
Ulrich Wiehle
Tel.: +49(0)611 – 205855-11
Fax: +49(0)611 – 205855-66
e-mail: wiehle@cometis.de
14.12.2007 Financial News transmitted by DGAP
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Language: English
Issuer: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Deutschland
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info@fair-value-reit.de
Internet: www.fair-value-reit.de
ISIN: DE000A0MW975
WKN: A0MW97
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Stuttgart, München
End of News DGAP News-Service
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