Colonia Real Estate AG / Strategic Company Decision/Alliance
11.03.2008
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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Colonia Real Estate starts biggest solar project for residential properties
in Germany
Innovative business segment generates long term recurring earnings
- Master agreement closed for solar modules for up to EUR 100mn
- Conservative scenario: Recurring earnings of EUR 6 to 8mn p.a.
- Return on equity of about 50% in this new business segment
- CRE combines continuosely high returns and ecological responsibility
Cologne, 11th of March 2008 The real estate company Colonia Real Estate
AG (ISIN DE0006338007) opens the real estate business towards the renewable
energy, opening a new highly profitable business area 'Sustainable Living'.
It is planned to install solar panels on the roofs of the residential
properties of the Colonia Real Estate during the following month in order
to produce environmental friendly power. For this purpose a master
agreement was closed between the exchange-listed systaic AG (ISIN
DE000A0JKYP6) and Colonia Real Estate AG.
Thus, systaic will provide and install solar panels worth EUR 100mn to
produce 20-25MWp power per year. This equates a total power supply of
almost 6,000 households. Before the agreement was closed the residential
portfolio of the Colonia Real Estate was extensively proved regarding the
feasibility. The first solar modules will presumably be installed in May
2008. The entire installation is expected to be finalized by the end of
2008. Additionally, this will lead to a CO2 reduction of 14,000 tons per
year.
Colonia Real Estate estimates that in a first step 50%-60% of the project
volume will be realised on their own properties. Currently, the 20,000
residential units in the portfolio of Colonia make the company the third
largest exchange listed residential company in Germany. It is planned to
install further solar modules on properties supervised by Colonia´s asset
management. CRE´s entire assets under management are currently EUR 3 bn.
The combination of real estate and renewable engery will also be made
available to third parties. Herefore, additional master agreement are in
current negotiations.
Colonia Real Estate expects in a first step an investment volume on own
objects of around EUR 60mn. Those solar power systems produce annual
guaranteed recurring cash flows from feeding power into the national power
grid under the 'Erneuerbare Energie Gesetz' (EEG) in the amount of
approximately EUR 6 to 8mn additionally to the current EUR 60mn rental
income. The return on equity of this new business segment will be at around
50%. It is planned that the investments will be financed with an equity
ratio of about 10%. Financing offers are currently negotiated with several
banks.
Moreover, Colonia Real Estate secured a call option through their
investment at the company systaic AG of 10%.
Contact:
Christoph D. Kauter
Head of Corporate Finance and Investor Relations
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: ir@cre.ag
PR and Press Contact:
edicto GmbH
Axel Mühlhaus
Tel.: +49 (0) 69 9055055-2
amuehlhaus@edicto.de
DGAP 11.03.2008
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8 50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: info@cre.ag
Internet: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf; Freiverkehr in Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-Adhoc: Colonia Real Estate starts biggest solar project for residential properties in Germany - Innovative business segment generates long term recurring earnings
| Source: EQS Group AG