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ADLER Real Estate AG: ADLER Real Estate secures acquisition of a portfolio with around 6,750 units

ADLER Real Estate AG / Key word(s): Miscellaneous

27.10.2014 / 09:36

ADLER Real Estate secures acquisition of portfolio with around 6,750 units

- Acquisition of housing association in Wilhelmshaven

- Value of the portfolio considerably above the EUR 200 million mark

- Housing stock to increase to 32,000 units

Hamburg, 27 October 2014. ADLER Real Estate AG, Frankfurt / M., (ISIN DE0005008007) has agreed to acquire a majority stake of a large residential property portfolio comprising of c. 6,750 units. The Company has yet again secured another major portfolio acquisition in line with its ongoing growth strategy bringing ADLER's property portfolio to c. 32,000 residential units by year end 2014. The current portfolio, including the latest acquisitions is expected to generate c. EUR 108 million in net rental income on an annualized basis.

Upon completion of the transaction the portfolio is expected to generate positive cash flows and will thus continue to contribute to ADLER's ongoing Group success. Since consolidating ESTAVIS AG in H1 2014 together with the other portfolio acquisitions, Net Asset Value according to EPRA guidelines increases by c. 15% from EUR 11.27 to around EUR 13 per share. The expected EPRA NAV per share on a fully diluted basis is expected to grow from EUR 9.45 as of H1 2014 to c. EUR 11 (the dilution resulting from the outstanding convertible bonds currently trading in the money).

The portfolio was acquired by way of the takeover of the majority stake in Jade mbH, a housing association located in Wilhelmshaven, on the North Sea coast of Lower Saxony. Jade mbH is not only the holding company but also the property and facility manager of the portfolio. The portfolio value is currently considerably above the EUR 200 million mark. "We have once again secured the acquisition of a residential property portfolio in which the fair value exceeds the transaction one" says Axel Harloff, CEO of ADLER Real Estate AG. "Moreover, we will also have a very solid housing stock which is expected to increase in value over time."

Specifically, Jade mbH comprises of 6,641 residential and 31 commercial units with 74 apartments destined to student accommodation. The properties have been very well maintained and are in a very good condition, with virtually no deferred maintenance or capex backlog and are located in the better areas of Germany's largest naval site. About two-thirds of the properties were built between the 1930s and 1940s and its current net rental income stands at c. EUR 20.5 million.

The portfolio's occupancy rate is c. 93 percent and has benefited from an upward trend in recent times resulting from the positive economic activity driven by the construction of the new deep sea water port. "After many years of economic weakness as a consequence of structural change Wilhelmshaven is expected to develop very positively going forward" says Harloff. According to a market research by independent institute F & B Research and Consulting GmbH, the population decline in Wilhelmshaven has stopped. Since 2007 the number of jobs has once again increased and has consequently seen a downward trend in unemployment. Due to both the focus of the Bundeswehr's marine service units on Wilhelmshaven and the new port JadeWeserPort, the city is expected to benefit from further authorities' incentive schemes. "This will have an impact on the development of housing rents which have already grown, according to F + B, by eight percent in Wilhelmshaven between 2005 and 2013" said Harloff.

For inquiries please contact:

Press: german communications dbk ag
Jörg Bretschneider
Milchstr. 6 B, 200148 Hamburg, Germany
Phone: +49-(0)40/46 88 33 0, Fax: +49-(0)40/46 88 33 40

Investor Relations: Hillermann Consulting
Christian Hillermann
Poststraße 14, 20354 Hamburg, Germany
Phone: +49-(0)40/32 02 79 10, Fax: +49-(0)40/32 02 79 114

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