DGAP-Adhoc: WESTGRUND AG Acquires 13,300 Flats WESTGRUND

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News Desk 2018
DGAP-Adhoc: WESTGRUND AG Acquires 13,300 Flats

WESTGRUND Aktiengesellschaft / Key word(s): Real Estate 10.07.2014 10:45 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Deal nearly triples the company's housing stock, bringing the total up to roughly 20,000 flats - Company's largest-ever acquisition - Annual net rental income jumps up by 150% to approx. 61 million euros Berlin, 09 July 2014 - With the supervisory board having approved the deal today, WESTGRUND AG just acquired a property portfolio including a total of around 13,300 flats in Lower Saxony, Brandenburg, Mecklenburg-Western Pomerania, and Saxony. The single largest portfolio location is Wolfsburg. Seller is the berlinovo Immobilien Gesellschaft mbH in Berlin, whose relevant committee also approved the deed for the property portfolio today. A core inventory of 11,999 residential and 63 commercial units with a combined lettable area of around 735,000 square metres is earmarked for the proprietary portfolio. A residual portfolio of 1,300 units located in Neubrandenburg and Görlitz will be resold, with the deeds to be signed in the coming days. Even if these resold units are taken out of the equation, the company's housing stock, including commercial units, will almost triple, bringing the core portfolio up to a total of around 19,000 flats. The net purchase price for the core portfolios comes to approximately 390 million euros, while its annual net rent adds up to nearly 37 million euros, reflecting an occupancy rate of roughly 91 percent today. As a result, the annualised net rent revenues of the WESTGRUND Group will rise to more than 61 million euros. Financing for the portfolio acquisition has already been secured in its entirety. The necessary fundraising is to take the form of a capital increase with subscription rights, with the increase already fully guaranteed by a banking syndicate including Germany banks and investors. The resolutions required for the arrangement were approved by the company's annual general meeting on 13 June 2014. The capital increase will most likely go ahead in the fall of 2014 - following the approval of the prospectus by the Federal Supervisory Authority for Financial Services (BaFin). The debt share of the financing arrangement for the portfolio acquisition has also been fully secured. WESTGRUND Aktiengesellschaft The Management Board 10.07.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: WESTGRUND Aktiengesellschaft Joachimstaler Strasse 34 10719 Berlin Germany Phone: +49 30 639 619 20 Fax: +49 30 639 619 228 E-mail: krienen@westgrund.de Internet: www.westgrund.de ISIN: DE000A0HN4T3 WKN: A0HN4T Listed: Regulierter Markt in Düsseldorf; Freiverkehr in Berlin, Hamburg, Stuttgart; Frankfurt in Open Market End of Announcement DGAP News-Service ---------------------------------------------------------------------------

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