PRESS RELEASE

TAG Immobilien AG acquires portfolio of 360 residential units in Erfurt

(Hamburg, 12 November 2012) TAG Immobilien AG (TAG in the following) has further expanded its residential real estate portfolio by acquiring more than 360 centrally located residential units in Erfurt, the capital of the German state of Thuringia. The purchase price of approx. EUR 29 million includes the debt on the property.

The newly acquired properties comprise a contiguous residential complex, which includes five buildings, an underground garage and an aboveground parking garage. The total rental space of the property, which was acquired in a share deal, exceeds 32,000 m². The ground-floor space is rented out to retail chain stores, and there are offices on the first floor. All other floors, with total floor area of 21,000 m², are residential, and consist of various-sized 1- to 4-room apartments with a high occupancy rate of 97 percent. The properties, which are held as a leasehold estate, were built in the early 1980s and renovated between 1999 and 2001.

This acquisition, too, is in line with TAG's strategy of investing at locations where it already has properties. Thus, the newly acquired portfolio can be cost-effectively managed by the TAG Group's existing branch in Erfurt. The annual net rent is approx. EUR 3 million, so this purchase will lead to a further increase in FFO (Funds from Operations).

'Our strategy for acquisitions is that they must lead directly to an improvement in FFO and NAV. That is the case here: we will be able to derive considerable contributions to the operating result from this portfolio as early as next year. Our increasingly strong platform puts us in a position to continue making smaller, attractive acquisitions that complement our portfolio and strengthen its operating profitability,' says Rolf Elgeti, CEO of TAG Immobilien AG.

 

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TAG Immobilien AG
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