Corporate | 6 July 2011 07:27


alstria office REIT-AG: alstria acquires office buildings in Dusseldorf and Frankfurt


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

06.07.2011 / 07:27

Press release

alstria acquires office buildings in Dusseldorf and Frankfurt

– 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 from VastNed 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 1 st 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:

Property address City Total lettable area (sqm) Vacant area (sqm) Vacancy Annual net rent (EUR) WAULT
(years)
Emanuel-Leutze-Strasse 11 Dusseldorf 8,600 2,200 26% 796,700 1.2
Hans-Böckler-Strasse 36 Dusseldorf 7,900 7,900 100% 0 0.0
Insterburgerstrasse 16 Frankfurt/M. 13,400 3,100 23% 1,752,600 2.9
Kaistrasse 16/16a/18 Dusseldorf 9,500 1,000 11% 1,986,000 3.0
Mainzer Landstrasse 33a Frankfurt/M. 3,300 3,300 100% 0 0.0
Total 42,700 17,500 41% 4,535,300 2.6

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 74 properties with an aggregate lettable space of approximately 813,000 sqm and is valued at approximately EUR 1.4 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.de
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.



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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
131005  06.07.2011