TAG Immobilien AG: TAG Immobilien AG seizes additional selling opportunities on the Berlin market - On the operations side, significant success in reducing vacancy towards year-end
TAG Immobilien AG / Key word(s): Real Estate
TAG Immobilien AG seizes additional selling opportunities on the Berlin market - On the operations side, significant success in reducing vacancy towards year-end
Hamburg (15 December 2014) - As the end of the year approaches, TAG Immobilien AG ('TAG') has again seized market opportunities by realising sales of residential properties in Berlin totalling EUR 76 million. A total of 920 residential units were sold to local housing associations for a book profit of about EUR 6 million. The transfer of risks and rewards of ownership has been agreed for 31 December 2014.
In the first week of December, a portfolio of 218 residential units in the Staaken district of Berlin with a total area of 16,300 m² was already sold for EUR 21.5 million. The package price is roughly equivalent to 18 times the current annual net cold rent. The property had been managed by TAG's property platform for several years and has a vacancy rate of 1.8%.
In mid-December, another 702 residential units in the Neukölln, Lankwitz and Charlottenburg districts of Berlin, with a total area of approximately 43,000 m², were sold at a price of EUR 54.5 million, or roughly 19 times the current annual net cold rent. The portfolio has an average vacancy rate of 5.3%.
TAG expects approximately EUR 30 million in net cash inflow from these two transactions.
Both disposals took place well above the book value of the properties in the currently high-priced Berlin area. The released equity is to be reinvested in further acquisitions with higher initial returns in TAG's core regions with development potential. Based on the acquisitions and sales, the FFO forecast for the financial year 2015 is confirmed, as the portfolios newly acquired in recent weeks compensate the FFO reductions from sales.
On an operational level the investment strategy coupled with regional marketing efforts is bearing further fruit. TAG COO Claudia Hoyer comments: "We were able to significantly reduce vacancy in our residential units again towards the end of fiscal 2014. While vacancy at year-end 2013 was 8.9%, and 8.6% at the end of Q3 2014, vacancy in December 2014 is down to 8.1%. Further vacancy reduction successes were achieved especially in the Salzgitter region, where vacancy is now 15.5% (Q3 2014: 16.6%; previous year: 18.6%)."
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|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 390|
|ISIN:||DE0008303504, XS0954227210, DE000A12T101|
|WKN:||830350, A1TNFU, A12T10|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart|
|End of News||DGAP News-Service|