alstria office REIT-AG / Disposal
30.10.2009
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alstria agrees to sell a EUR 93.4 million office portfolio
* Binding agreement to sell a EUR 93.4 million portfolio signed
* Assets located in seven different German cities
* Largest German office portfolio transaction in 2009
HAMBURG, 30th October, 2009 - alstria office REIT-AG (symbol: AOX, ISIN:
DE000A0LD2U1), an internally managed Real Estate Investment Trust (REIT)
which is solely focused on acquiring, owning and managing office real
estate in Germany, today announces that it has agreed on the disposal of a
real estate portfolio.
The portfolio consists of seven properties mainly located in secondary
German cities. The assets have a total lettable area of approximately
48,000 sqm (of which 1,500 sqm are residential). The properties are let on
an average remaining lease length of 8 years.
The total sales price for the portfolio of approximately EUR 93.4 million
reflects the 2008 year end valuation and the current IFRS book value of the
assets. The portfolio, that has an occupancy rate of 99%, generates an
overall annual rent of around EUR 6.4 million which would reflect a buyer
gross yield on cost of around 6.5% .
The transaction will allow alstria to further reduce its syndicated loan
balloon due at the end of 2011 to EUR 784 million down from EUR 1.1 billion
twelve months ago. The transaction will also generate EUR 32 million of
free cash which further strengthens the company's financial position.
Including this transaction alstria will have sold a total of EUR 141
million of assets in 2009, paying down EUR 84 million of debt, and freeing
up EUR 57 million of equity. All these transactions have been at or above
the 31st December 2008 valuations, and most recent reported IFRS value.
'Not only theses sales have allowed us to reduce the balloon payment on our
syndicate loan due at the end of 2011, but they also freed up almost 14 %
of the market cap of the company in cash providing alstria with significant
financial flexibility' said Alexander Dexne, CFO of alstria. 'Considering
this transaction, and the further refinancing pipeline that we are
currently contemplating, we are very close to reaching our balloon
reduction goals', the CFO added.
'We have achieved total asset sales of EUR 141 million so far this year
which are highly accretive to our shareholders considering the assets were
sold at or above 31st December 2008 valuations', added Olivier Elamine, CEO
of alstria. 'The sale of this portfolio reflects alstria's ability to
dispose some of its non core mature assets, and willingness to carefully
evaluate capital recycling opportunities'.
alstria was advised by Freshfields Bruckhaus Deringer and the transaction
was brokered by Angermann.
About alstria:
alstria office REIT-AG (alstria) 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 and was
converted into the first German REIT in October 2007. Its headquarters are
based in Hamburg.
alstria owns a diversified portfolio of properties across attractive German
office real estate markets. Its current portfolio comprises 78 properties
with an aggregate lettable space of approximately 874,000 sqm and is valued
at approximately EUR 1.7 billion.
The alstria office REIT-AG 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 see:
www.alstria.com
alstria.blogspot.com
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an
offer to buy any securities. 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.
Media:
Christian Falkowski
Phone: +49 - 40 - 226 341 340
Email: pr@alstria.de
Investor Relations:
Brigitte Büchner
Phone: +49 - 40 - 226 341 319
Email: ir@alstria.de
30.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/a|]]]|]
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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
Indices: SDAX, EPRA, German REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Hamburg, Stuttgart
End of News DGAP News-Service
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DGAP-News: alstria office REIT-AG: alstria agrees to sell a EUR 93.4 million office portfolio
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