News Detail

TLG IMMOBILIEN AG acquires office property with significant letting potential in Berlin

DGAP-News: TLG IMMOBILIEN AG / Key word(s): Acquisition/Real Estate

2016-08-10 / 07:05
The issuer is solely responsible for the content of this announcement.


Press release

TLG IMMOBILIEN AG acquires office property with significant letting potential in Berlin

- Total investment volume of around EUR 32.1 m

- Multi-tenant office property with flexible use of space in an excellent micro-location in Berlin-Tegel

- Occupancy rate of around 40% and a weighted average lease term (WALT) of 5.9 years

- Around EUR 2.1 m p.a. currently generated from rental agreements (incl. rent guarantee)

Berlin, 10 August 2016 - Last week TLG IMMOBILIEN AG signed the purchase agreement for an office property at Kapweg 3-5, 13405 Berlin. The company is investing around EUR 32.1 m in the transaction. The property was sold by a private seller and the transaction was brokered by Colliers International.

The modern office property was built in 1997 and features seven floors with a total lettable area of around 18,200 sqm. The space can be partitioned to create single offices or an open-space office. The occupants are currently office users and medical practices. The current occupancy rate is around 40% as the seller initially planned to convert the property and therefore shelved offers to rent out office space. As a result, the property currently generates around EUR 740,000 p.a. from rental agreements. Additionally, the seller has issued an extensive rent guarantee for the existing vacant space for the next two years. There is significant potential to increase rental income through re-letting which can be generated by repositioning the property. The weighted average lease term (WALT) in the property is 5.9 years. The property features an underground car park with 182 parking spaces and enjoys excellent connections to public transport and the A 100 Autobahn.

Situated on the bustling Kurt-Schumacher-Platz, the office is in the heart of a district near to Tegel airport and is in the direct vicinity of "Der Clou" shopping centre.

"This was just one of the reasons why we acquired this property, as there is very little available space on the Berlin office market due to the high level of demand and the letting opportunities will therefore be outstanding. We are certain that we will be able to reduce the vacancy rate of this property quickly and in doing so boost its potential", says Niclas Karoff, member of the Management Board of TLG IMMOBILIEN AG..

Contact

Christoph Wilhelm
Corporate Communications
Phone: +49 30 2470 6355
E-Mail: christoph.wilhelm@tlg.de
Sven Annutsch
Investor Relations
Phone: +49 30 2470 6089
E-Mail: sven.annutsch@tlg.de
 

About TLG IMMOBILIEN AG
TLG IMMOBILIEN AG is a stock exchange-listed leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For 25 years, TLG IMMOBILIEN AG is synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use. TLG IMMOBILIEN AG focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as a regionally diversified portfolio of retail properties in highly frequented micro locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not only due to their excellent locations but also because of their very long-term rental or lease agreements.

As at 30 June 2016, the value of the properties under IFRS totalled EUR 1,983 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 17.33.



2016-08-10 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


show this

back