DGAP-Adhoc: ADO Properties S.A.: ADO Properties to purchase 1,001 units in Berlin

ADO Properties S.A.  / Key word(s): Contract/Real Estate

02.10.2015 08:33

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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The issuer is solely responsible for the content of this announcement.

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Berlin, 2 October 2015. - ADO Properties S.A. (the "Company") has entered
into agreements to purchase in total 1,001 units in Berlin of which 885 are
residential units and 116 are commercial units. The acquisitions were
structured as share deals in which ADO Properties acquires approx. 95% of
the shares in several German entities from international fund and private
investors. The purchase price for 100% of the acquired assets amounts to
EUR 137 million. Closing of the transactions is expected to occur at the
end of October 2015. Approximately 70% of the portfolio is located in the
districts of Prenzlauer Berg, Kreuzberg, Neukölln and other central
districts with high rental growth potential. The rest of the portfolio is
mostly in the north of Berlin in the district of Pankow. The properties in
the central Berlin districts are predominantly Alt-Bau buildings from the
turn of the century and the assets in Pankow were built in the 1990's.
The acquired residential portfolio has an in-place rent of EUR 6.5
sqm/month and vacancy rate between 2.3% for the Pankow portfolio and 3.3%
for the inner-city locations. The Company expects new letting rents between
EUR 7.2 sqm/month for the Pankow portfolio and EUR 8.8 sqm/month for the
inner-city locations. 4 buildings of this portfolio with 35 units are
planned for privatization. The commercial part in the portfolio has an
in-place rent of 8.2 sqm/month and a vacancy rate of 12%.
The total annual net cold rent from the portfolios at purchase amounts to
EUR 6.4 million. The Company estimates that the portfolios will contribute
to our annual FFO1 (from rental activities) based on our targeted LTV of
50% in an amount of EUR 4 million at acquisition. The Company expects no
material impact on NAV per share at acquisition and due to the
characteristics of the acquired assets and their micro-locations we see
good growth potential in the future.


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Language:     English
Company:      ADO Properties S.A.
              20 rue Eugène Ruppert
              LK-2453 Luxembourg
              Grand Duchy of Luxembourg
Phone:        +49 (0)30-403 907 900
Fax:          +49 (0)30-403 907 901
E-mail:       office@ado.immo
Internet:     www.ado.immo
ISIN:         LU1250154413
WKN:          A14U78
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated
              Unofficial Market in Dusseldorf, Stuttgart, Tradegate
              Exchange
 
End of Announcement                             DGAP News-Service
 
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