TAG Immobilien AG: TAG Immobilien AG expands residential properties / Acquisition of 3,150 units with prospect of high returns
TAG Immobilien AG expands residential properties / Acquisition of 3,150 units with prospect of high returns
Hamburg, 27 November 2014 - Since mid-November, TAG Immobilien AG ('TAG') has acquired three portfolios in northern and eastern Germany with a total of around 3,150 residential units, all of them characterised by attractive locations, high yields and potential for development. Thanks to its existing local infrastructure, TAG is in a position to quickly integrate, efficiently manage, and profitably develop the new property. The transfer of ownership rights, benefits and obligations for all portfolios is planned for the first quarter of 2015.
Portfolio acquisition in northern and eastern Germany
In a share deal concluded yesterday, TAG acquired an extensive residential real estate portfolio of 2,300 residential units for a purchase price of EUR 103.0 million, representing about 10.5 times the current annual net rent. The properties are located in various federal states in northern and eastern Germany. 626 residential units (about 27%) are in the state of Thuringia, more specifically in Nordhausen and in Stadtilm near Erfurt. Another regional focus is northern Germany with 1,064 units (approximately 47%) located in Kiel and Itzehoe, among other places. The rentable area of the apartments totals around 147,000 sqm, and the current rent is EUR 9.8 million p.a. The portfolio has a vacancy rate of 3.7%. The properties, all of which have been renovated, were built between 1958 and 1986.
Portfolio acquisition in Saxony
In addition, a portfolio in Görlitz with 550 units and a rentable area of about 34,300 sqm was acquired at a purchase price of EUR 12.9 million in mid-November 2014. The properties are renovated and well maintained and have a vacancy rate of 9.5%. The purchase price factor was 9.1 times the current annual net rental income of EUR 1.42 million.
Portfolio acquisition in Schwerin
Finally, a purchase contract for about 300 residential units in Schwerin at a price of EUR 8.6 million (at 9.8 times the current annual net rental income) was notarised earlier this week. The rentable area is around 16,450 sqm, and the current rent is EUR 0.87 million p.a. The portfolio has a vacancy rate of 3%. The real estate was built between 1982 and 1988.
Martin Thiel, Chief Financial Officer of TAG, says: "The acquisitions of the past few days and weeks have borne out our strategy of systematically reinvesting the capital freed up by disposals into fast-developing regions and highly profitable portfolios, so that we can continue to grow with them. The regional distribution of the purchased properties fit in perfectly with our existing management structure. The necessary funds will initially come from our own equity and will quickly be refinanced on attractive terms and with long maturities. All the acquisitions show that despite the opportunities for selling off properties we identified in the market - in Berlin, for example - there is also still growth potential. So targeted capital allocations will further increase our results and cash flows per share."
End of Media Release
Issuer: TAG Immobilien AG
Key word(s): Real estate
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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-Media|