TAG Immobilien AG acquires 1,000 new residential units in Saxony - increasing its real estate portfolio to 80,000 units in total
DGAP-News: TAG Immobilien AG / Key word(s): Acquisition
TAG Immobilien AG acquires 1,000 new residential units in Saxony - increasing its real estate portfolio to 80,000 units in total.
Increased reduction in vacancy rates and rental growth - vacancy rate in residential units drops in December 2015 to 7.5%, after 8.4% in September 2015 and 9.0% a year ago.
Hamburg (25 January 2016) - TAG Immobilien AG ("TAG" or the "Company") acquired 1,000 new residential units for EUR 39.5m in December 2015. The portfolio, situated in Saxony, is primarily located in the cities of Chemnitz (70%) and Riesa close to Dresden (20%). This acquisition further strengthens the presence of TAG in the Saxony region, which has been demonstrating a positive economic development.
The portfolio, which was fully refurbished during the 1990's, comprises of an area of approx. 57,100sqm and currently has a vacancy rate of approx. 3.8%. The current annual net cold rent is EUR 3.36m or EUR 5.05/sqm. The purchase price implies a multiple of 11.8x of the annual net cold rent, or a gross initial yield of 8.5%. The transaction is expected to close in the first quarter of 2016.
Following both, this most recent acquisition as well as the one announced in November 2015, the Company's total portfolio comprises of almost 80,000 units, compared to 72,500 units at the beginning of 2015.
In addition, TAG has continued to make significant progress in decreasing the vacancy rate of its core portfolio since the beginning of 2015. As of year-end 2015, the vacancy rate in the residential portfolio decreased by 1.5 percentage points from 9.0% to 7.5%, compared to the beginning of 2015. This represents a remarkable achievement compared to the years 2014 (0.8 percentage points) and 2013 (0.7 percentage points). Furthermore, this positive trend has been observed in all regions TAG operates in. For example, the vacancy rate in the Erfurt region decreased from 7.6% to 4.3%, in the Salzgitter region from 15.5% to 12.1%, and in the Rhine-Ruhr region from 2.6% to 2.2%. As a result of this very positive development, rental growth on a like-for-like basis and including effects from vacancy reduction rose to 3.3% p.a. at 31 December 2015 after 2.1% p.a. at year-end 2014.
Martin Thiel, CFO of TAG Immobilien AG, comments as follows:
TAG Immobilien AG
|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 390|
|ISIN:||DE0008303504, XS0954227210, DE000A12T101|
|WKN:||830350, A1TNFU, A12T10|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart|
|End of News||DGAP News Service|