09.04.2015
Fair Value REIT-AG DE000A0MW975
DGAP-News: Fair Value REIT-AG implements expansion strategy by growing direct investment portfolio
DGAP-News: Fair Value REIT-AG / Key word(s): Real Estate
Fair Value REIT-AG implements expansion strategy by growing direct
investment portfolio
09.04.2015 / 07:30
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Fair Value REIT-AG implements expansion strategy by growing direct
investment Portfolio
- Direct purchase of previously indirectly held property in Cologne
- Property fully rented long-term
- Around 11 % increase in direct holdings to a total of 14 % of portfolio
Munich, April 9, 2015 - Fair Value REIT-AG ("Fair Value") has successfully
advanced its growth strategy further, transferring a fully rented property
in Cologne into its portfolio of direct holdings. The company has purchased
a warehousing and exhibition hall with office premises in Cologne,
Marconistrasse 4-8, for EUR 3.3 million with effect as of March 31, 2015.
This price stands around 10 % below the property's market value surveyed as
of December 31, 2014. The property offers a rentable building space of
9,640 square metres and achieves annual rental income of currently EUR 365
thousand. The property is rented for a further eight years to one of
Germany's leading wood merchants. The building's rooftops are leased for a
further 18 years to a photovoltaic plant operator.
The property's seller is a subsidiary of Fair Value REIT-AG, in which Fair
Value holds an 80% interest. This company can be quickly liquidated
following the sale of this real estate asset, which will lead to around EUR
120 thousand of annual general administrative cost savings.
Frank Schaich, CEO of Fair Value REIT-AG, explains the background: "The
transfer of this property in Cologne into our portfolio of direct holdings
allows us to not only improve our operating earnings but also reduce our
Group's complexity. This most recent investment carries a gross rental
yield of 11 % per annum, thereby meeting our investment criteria to a high
degree. Incidental purchase costs are low due to our interest in the
seller, and they are covered by the market valuation of the property of
around EUR 3.7 million. It also boosts the level of our direct investments
by around 11 % to reach 14 % of our current portfolio. Further transfers to
our portfolio direct holdings will follow over the coming months."
Contact
Fair Value REIT-AG
Frank Schaich
Tel. +49 (0) 89-9292815-10
Fax +49 (0) 89-9292815-15
e-mail: [email protected]
Corporate Profile
Fair Value REIT-AG, based in Munich, focuses on the acquisition, leasing,
property management and sale of commercial properties in Germany. At the
core of its investment activities are retail and office properties in
German regional centres.
As of December 31, 2014, Fair Value's share of the total portfolio of 43
properties (previous year 49 properties) amounted to around EUR 281 million
(previous year EUR 312 million). This portfolio had an occupancy rate of
91.5% (previous year 93.3%). As of December 31, 2014, the weighted
remaining term of the leases was 5.0 years, unchanged to December 31, 2014.
Around 52% of the potential rent relates to retail floor space, 37% to
office space and 11% to other types of use.
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09.04.2015 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.
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Language: English
Company: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Germany
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: [email protected]
Internet: www.fvreit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart
End of News DGAP News-Service
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