DGAP-News: TLG IMMOBILIEN AG / Key word(s): Acquisition/Real Estate
TLG IMMOBILIEN AG acquires office properties in Frankfurt am Main for approx. EUR 160 m - a strategic market entry for future growth in western Germany
- TLG IMMOBILIEN platform is now being expanded to include other growth regions in Germany
- Campus Carré in Frankfurt-Niederrad and Olof-Palme-Straße 35 in Frankfurt's Mertonviertel acquired
- Purchase price of approx. EUR 160 m
- Contractual annualised in-place rent of around EUR 9.8 m
- Fully occupied (99% and 100%) by well-known, reliable anchor tenants
- WALT of 4.7 years (Campus Carré) and 9.5 years (Olof-Palme-Straße)
Berlin, 14 October 2016 - With the signing of the purchase agreement for the office properties Campus Carré in Frankfurt-Niederrad and Olof-Palme-Strasse 35 in Frankfurt's Mertonviertel today, TLG IMMOBILIEN AG acquired two high-grade properties in western Germany. With this transaction in Frankfurt am Main, TLG IMMOBILIEN AG is expanding its disciplined investment approach to value-creating acquisitions in growth markets in western Germany. The seller is an American investor and the transaction was brokered by Savills. Based on portfolio value as of 30 June 2016, Frankfurt am Main will now be the second-largest office location in the portfolio of TLG IMMOBILIEN AG after Berlin.
Located in the office district of Niederrad, Campus Carré (Lyoner Str. 25, 60528 Frankfurt am Main) was completed in 2003 and has a lettable area of around 31,500 sqm as well as more than 500 parking spaces. Around EUR 85.7 m of the purchase price is attributable to this property. The office building has modern fittings and as of today generates a contractual annualised in-place rent of around EUR 5.5 m. The weighted average lease term (WALT) of the rental agreements is 4.7 years. With an occupancy rate of 99%, the property is almost fully occupied today. The largest tenants include HOCHTIEF Solutions AG, Techniker Krankenkasse and Steigenberger.
An office property in Mertonviertel (Olof-Palme-Strasse 35, 60439 Frankfurt am Main) was also acquired in the same transaction. The purchase price of this property amounts to EUR 74.3 m. The building has a lettable area of 26,700 sqm, was built in 1993 and fully modernised in 2013 and features approx. 450 parking spaces. The office property has an occupancy rate of 100% and an annualised in-place rent of around EUR 4.3 m per toda, the WALT is 9.5 years. The property is rented by the global industrial concern Air Liquide as part of a long-term agreement.
'For us, this transaction is the strategic start of our move into the rest of Germany', says Niclas Karoff, member of the Management Board of TLG IMMOBILIEN AG. 'With this acquisition in Frankfurt we are starting off with exceptionally well-positioned properties in each of the micro-markets. From this position we intend to systematically expand our portfolio in the promising Rhine-Main area as well as in other locations in Germany. Our business model will not change, meaning that our activities in the future will still be determined by our local proximity to our customers and markets', continues Karoff.
TLG IMMOBILIEN AG has a 25-year history of focusing on the growth regions in Berlin and eastern Germany. Until now, the company has mostly been active in the office markets in Berlin, Dresden, Leipzig and Rostock. Since its IPO in 2014, TLG IMMOBILIEN AG has grown steadily by acquiring office, retail and hotel properties in its core regions. This has enabled TLG IMMOBILIEN AG to increase the value of its portfolio by more than EUR 500 m to around EUR 2 bn since the company's IPO.
About TLG IMMOBILIEN AG
As at 30 June 2016, the value of the properties of TLG IMMOBILIEN AG 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.
This publication contains future-oriented statements based on current opinions and assumptions of the management of TLG IMMOBILIEN AG made to the best of their knowledge. Future-oriented statements are subject to known and unknown risks, uncertainties and other factors that can lead to the turnover, profitability, target achievement and results of TLG IMMOBILIEN AG differing greatly from those named or described expressly or implicitly in this publication. Due to this, those who come into possession of this publication should not trust in such future-oriented statements. TLG IMMOBILIEN AG accepts no liability and gives no guarantee for the correctness of such future-oriented statements and will not adjust them to future results and developments.
|Company:||TLG IMMOBILIEN AG|
|Phone:||030 - 2470 - 50|
|Fax:||030 - 2470 - 7337|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|