ADO Properties S.A.: ADO Properties to purchase 1,001 units in Berlin

DGAP-News: ADO Properties S.A. / Key word(s): Contract/Real Estate
2015-10-02 / 09:12

Berlin, 2 October 2015. - ADO Properties S.A. (the "Company") has entered into agreements to purchase in total 1,001 units in Berlin of which 885 are residential units and 116 are commercial units. The acquisitions were structured as share deals in which ADO Properties acquires approx. 95% of the shares in several German entities from international fund and private investors. The purchase price for 100% of the acquired assets amounts to EUR 137 million. Closing of the transactions is expected to occur at the end of October 2015. Approximately 70% of the portfolio is located in the districts of Prenzlauer Berg, Kreuzberg, Neukölln and other central districts with high rental growth potential. The rest of the portfolio is mostly in the north of Berlin in the district of Pankow. The properties in the central Berlin districts are predominantly Alt-Bau buildings from the turn of the century and the assets in Pankow were built in the 1990's.
The acquired residential portfolio has an in-place rent of EUR 6.5 sqm/month and vacancy rate between 2.3% for the Pankow portfolio and 3.3% for the inner-city locations. The Company expects new letting rents between EUR 7.2 sqm/month for the Pankow portfolio and EUR 8.8 sqm/month for the inner-city locations. 4 buildings of this portfolio with 35 units are planned for privatization. The commercial part in the portfolio has an in-place rent of 8.2 sqm/month and a vacancy rate of 12%.
The total annual net cold rent from the portfolios at purchase amounts to EUR 6.4 million. The Company estimates that the portfolios will contribute to our annual FFO1 (from rental activities) based on our targeted LTV of 50% in an amount of EUR 4 million at acquisition. The Company expects no material impact on NAV per share at acquisition and due to the characteristics of the acquired assets and their micro-locations we see good growth potential in the future.

Rabin Savion, ADO Properties CEO says: "We are looking very positively at the acquired portfolios as they fit very well into our strategy set forth and we see strong accretion potential to our existing portfolio. We have identified substantial improvement opportunities suitable for our unit investment program as well as interesting privatization projects."
About ADO Properties

ADO Properties is a pure-play Berlin-based residential real estate company with approximately 15,500 units, including recent acquisitions. The Company has a fully integrated, scalable in-house platform with its own property management. Along with the responsibility for the condition of its apartments and buildings, ADO Properties also assumes responsibility towards people, employees and neighbourhoods. The portfolio of ADO Properties is focused on central locations in Berlin and attractive districts at the city's outskirts.

Press contact
Thomas Rücker
Wallstraße 16
10179 Berlin, Germany

Tel.: +49 30 2844987-48
Fax: +49 30 2844987-99

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Language: English Company: ADO Properties S.A. 20 rue Eugène Ruppert LK-2453 Luxembourg Grand Duchy of Luxembourg Phone: +49 (0)30-403 907 900 Fax: +49 (0)30-403 907 901 E-mail: office@ado.immo Internet: www.ado.immo ISIN: LU1250154413 WKN: A14U78 Listed: Regulated Market in Frankfurt (Prime Standard), Luxembourg; Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange  
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