ADLER Real Estate AG: Sale of conwert stake successfully completed

Berlin, 18 January 2017: ADLER Real Estate AG has received 422 million euros in connection with the successful tender of its 26 percent share in conwert Immobilien Invest SE to Vonovia SE. The transaction took place in the context of the voluntary takeover offer of Vonovia to the shareholders of conwert.

Consistent with its strategy to improve its performance, ADLER plans to use the proceeds from the transaction to buy back higher yielding bank and capital markets debt. The plan is expected to generate an additional c. 10 million euros in FFO I in the current financial year. In addition, significant improvements will be generated also in regards to its LTV ratio and WACD. Bringing the key metrics closer to industry peers will greatly increase ADLER´s ability to attract a wider investor base.

Arndt Krienen, CEO of ADLER Real Estate AG, said: “For both the company and its shareholders, the completion of the transaction is very good news. Not only have we generated an economic profit amounting to c. 50 million euros, but also the planned buyback of higher yielding debt is expected to generate a greater return than what can currently be achieved through portfolio acquisition.“