alstria office REIT-AG / Miscellaneous
19.12.2007
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
alstria office REIT-AG Hits Its Investment Target for 2007
New acquisition of an office building in Berlin for an All-In-Cost of EUR
55 m
Total acquisition for the year of more than EUR 520 m with an average
vacancy rate of 12.5 % and a gross yield on cost of 6.4 %
REIT status providing unique competitive advantage in acquisitions
Hamburg, December 19, 2007 alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT),
solely focused on acquiring, owning and managing office real estate in
Germany announces herewith the signing of a purchase agreement for the
acquisition of an office building in Berlin fully let to the largest
European State pension insurance the 'Deutsche Rentenversicherung.'
The asset will be acquired for an All-In-Cost of approximately EUR 55 m
(EUR 2,300 per sqm) and will generate a passing rent of approximately EUR
3.25 m per annum (average of EUR 12 per sqm per month). The closing of the
transaction is expected to occur in the course of 2008. The transaction
will be financed through the existing credit facility at a 55 to 60 % loan
to value ratio.
The property is located in Berlin-Charlottenburg. The total lettable area
is approximately 22,500 sqm and includes 300 parking stalls. The building
is fully let to the Deutsche Rentenversicherung until mid 2012.
'This acquisition allows alstria to extend its exposure to the promising
office market of Berlin. The profile of the existing tenant and of the
lease terms fit perfectly to our strategy and our expectation of the Berlin
markets recovery', says Olivier Elamine, CEO of alstria. 'With this
acquisition, we position ourselves for the rebound in Berlins office
market that we expect will be fully effective by 2012'.
This acquisition allows alstria to cross the EUR 500 m of sustainable and
accretive investment target for the year. The company successfully ends its
2007 acquisition program which has allowed alstria to win major German
corporations and public entities as new tenants, including Rheinmetall AG,
Siemens, Bilfinger Berger, HUK-COBURG, MFI AG and the Deutsche
Rentenversicherung.
alstria´s acquisitons in 2007
Jan, Aurora, EUR 231 m all-in-cost, EUR 14.6 m passing rent, 6.3% gross
yield, 11% vacancy.
Mai, Munich, EUR 11.5 m all-in-cost, EUR 0.9 m passing rent, 7.8% gross
yield, 80% vacancy.
Aug, Hamburg, EUR 3.2 m all-in-cost, vacant.
Oct, REIT conversion.
Nov, MFI, REIT benefit, EUR 62 m all-in-cost, EUR 3.8 m passing rent, 6.1%
gross yield, 12% vacancy.
Dec, Bilfinger Berger, REIT benefit, EUR 111.3 m all-in-cost, EUR 7.7 m
passing rent, 6.9% gross yield, 13.5% vacancy.
Dec, HUK Coburg, REIT benefit, EUR 53 m all-in-cost, EUR 3.3 m passing
rent, 6.2% gross yield, 3.2% vacancy.
Dec, Berlin, EUR 55 m all-in-cost, EUR 3.3 m passing rent, 5.9% gross
yield, 0% vacancy.
Total EUR 527 m all-in-cost, EUR 33.6 m passing rent, 6.4% gross yield,
12.5% vacancy.
'Our target of accretive and sustainable acquisitions has been fully
reached for this year', continues Mr. Elamine. 'We have acquired more than
EUR 520 m of office real estate with an average vacancy rate of 12.5 % at a
gross yield on cost of 6.4 %. Thoses acquisitions have been made without
compromising our pure play approach or the quality of our portfolio. We
have been able to adapt rapidly to the changing market environment and
refrained from buying in the overheated markets this summer. Since our
conversion into a G-REIT, we have fully exploited the unique competitive
advantage of the REIT regime. From an operational stand point, the business
plan of the company is delivered in full.'
alstria´s CFO Alexander Dexne adds, 'alstria will go into 2008 with a very
solid capital structure, with more than EUR 1.9 billion of assets on its
balance sheet and a conservative leverage lower than 60 % LTV secured and
hedged for the next four years. In this very volatile market environment
the recent acquisitions confirmed that throughout the year we have been
consistently able to lock in an attractive positive spread between our
overall cost of financing and our running yield. Our active asset
management and lease up of the vacancy will improve this spread going
forward'
About the company
alstria office REIT-AG is an internally managed Real Estate Investment
Trust (REIT) solely focused on acquiring, owning and managing office real
estate in Germany. alstria was founded in January 2006, its headquarters
are based in Hamburg.
alstria office REIT-AG owns a diversified portfolio of properties across
attractive German office real estate markets. Its current portfolio
comprises 70 properties with an aggregate lettable space of approximately
770,000 sqm and is valued at approximately Euro 1.6 billion.
alstria intends to expand its portfolio significantly in the upcoming years
as part of a sustainable growth strategy based on selective investments and
active asset and portfolio management as well as on establishing and
maintaining good relationships with its key customers and decision makers.
For further information, please see: www.alstria.com
This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. The securities have already been sold.
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.
Contact
Dr. Charlotte Brigitte Loos
Manager Public Relations & Investor Relations
Tel.: +49 40 226 341 329
Fax: +49 40 226 341 310
Email: pr@alstria.de
DGAP 19.12.2007
---------------------------------------------------------------------------
Language: English
Issuer: alstria office REIT-AG
Fuhlentwiete 12
20355 Hamburg
Deutschland
Phone: +49 (0)40 226 341 300
Fax: +49 (0)40 226 341 310
E-mail: info@alstria.de
Internet: www.alstria.de
ISIN: DE000A0LD2U1
WKN: A0LD2U
Indices: SDAX, EPRA, German REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hamburg, München, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: alstria office REIT-AG Hits Its Investment Target for 2007
| Source: EQS Group AG