ADO Properties S.A.: ADO Properties increases its portfolio by more than 10% with the acquisitions of 1,905 units in Berlin
ADO Properties S.A. / Key word(s): Contract/Real Estate
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Berlin, 20 July 2016 - ADO Properties S.A. (the "Company") has entered into agreements to purchase in total 1,905 units in Berlin of which 1,877 are residential units and 28 are commercial units. The acquisitions were structured as share deals in which ADO Properties acquires approx. 95% of the shares in several German and Luxembourg entities. The purchase price for 100% of the acquired assets amounts to EUR 218 million. Closing of the transactions is expected to occur until the end of August 2016. The assets are located in the districts of Schöneberg, Wilmersdorf and Neukölln. The acquired residential portfolios have in-place rents between EUR 6.2 sqm/month to EUR 6.9 sqm/month and vacancy rates below 1.0%. The Company expects new letting rents between EUR 7.3 sqm/month and EUR 9.6 sqm/month for the inner-city locations, reflecting reversionary potential in the range of 17% to 38%. Few buildings are in the medium term planned for privatization.
The total annual net cold rent from the portfolios at purchase amounts to EUR 10.2 million. The Company estimates that the portfolios will contribute to our annual FFO1 (from rental activities) based on our targeted loan-to-value (LTV) of 50% in an amount of EUR 6.9 million at acquisition. The Company expects no material impact on net asset value (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.
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Company: ADO Properties S.A.
20 rue Eugène Ruppert
Grand Duchy of Luxembourg
Phone: +352 26 493 412
Fax: +352 27 860 722
Indices: SDAX, FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange
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