WCM Beteiligungs- und Grundbesitz-AG / Key word(s): Real Estate/Capital Increase 02.06.2015 08:50 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Ad-hoc announcement according to § 15 WpHG WCM AG intends to acquire a further office property in Frankfurt am Main and to implement a cash capital increase. * Planned purchase price approx. EUR 92 million * Exclusivity secured to conclude negotiations for the purchase agreement * High-profile location with sustainable tenant mix * Rental income of EUR 4.8 million p.a., occupancy at 86.7 percent * Average remaining lease term of around 20 years * Cash capital increase planned of up to EUR 150 million to finance the four transactions announced since April 2015 Frankfurt am Main, 2 June 2015 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) is in the final stages of contract negotiations to acquire an additional office property in Frankfurt am Main. The seller has granted WCM AG exclusivity to conclude the negotiations for the purchase agreement. The parties have agreed the key parameters for the planned transaction. WCM AG's supervisory board approved the planned transaction today and its management board believes that the purchase agreement will be concluded by the end of June 2015. The property was built in 2006 and has a total rental area of approx. 28,400 square meters. It is currently 86.7 percent let with annualised rental income totalling around EUR 4.8 million. The property is in a prime location in Frankfurt am Main on the southern bank of the river Main and has a balanced mix of tenants, including government institutions and subsidiaries of large corporates with excellent credit ratings. 72 percent of rental income is recorded from a 24-year rental agreement with a tax authority. The weighted average lease term (WALT) for the whole property is around 20 years. The planned purchase price totals approx. EUR 92 million. Together with the most recently reported planned real estate acquisitions, WCM AG's portfolio would thus grow to 51 properties in 37 locations with a market value (100% basis) of EUR 438 million. The equity portion to be used for the planned property acquisitions is intended to be raised via a cash capital increase with subscription rights for WCM AG's existing shareholders with an issue size of of up to EUR 150 million. Berenberg has been mandated for the planned rights issue which is scheduled to be launched at the end of June 2015. Press contact: edicto GmbH Axel Mühlhaus/ Dr. Sönke Knop 069-905505-51 [email protected] This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities. Any potential subsequent offering in line with the intended future capital raising will be made solely on the basis of the securities prospectus to be published as approved by the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)). The information legally required to be provided to investors is contained only in the securities prospectus. In such event, the securities prospectus will be available free of charge on the internet at the website of the issuer. The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) and must not be distributed to U.S. persons (as defined in Regulation S of the U.S. Securities Act of 1933, as amended ("Securities Act")) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in the United States of America. The securities have not been and will not be registered under the Securities Act and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. The Issuer does not intend to register any portion of the offering in the United States of America or to conduct a public offering of the securities in the United States of America. This publication is only addressed to and directed at persons in member states of the European Economic Area (other than Germany) who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive (Directive 2003/71/EC as amended) ("Qualified Investors"). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at, Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this publication relates is only available to and will only be engaged in with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors. Any other persons who receive this publication in the European Economic Area (other than Germany) should not rely on or act upon it. This publication is not an offer of securities for sale in Canada, Japan or Australia. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: WCM AG is enjoying on-track, dynamic growth. Already at the end of 2014 it announced the acquisition of four commercial properties in Frankfurt, Düsseldorf, Bonn and Bremerhaven with a market value (100%) of EUR 86.4 million and annualised rental income of EUR 5.7 million. Rapid portfolio expansion continues since April 2015 Since the end of April 2015 the company has contractually secured the possibility of acquiring additional properties as part of three transactions with a total purchase price of more than EUR 230 million. This relates to a fully-let office property in Berlin with a price of EUR 22 million and 9,600 square meters of space and annualised rental income of around EUR 1.5 million. In addition, a pre-contractual agreement has been reached regarding the acquisition of a commercial portfolio with 16 properties in the Rhine/Main region and in Dresden. This portfolio has space of around 88,500 square meters and records rental income of around EUR 9.9 million. The agreed purchase price is EUR 116 million. At the end of April, the company also contractually secured the acquisition of a portfolio with 29 fully-let EDEKA supermarkets in Saxony-Anhalt, Lower Saxony and Berlin. These have a combined lettable space of around 77,500 square meters and annualised rental income of around EUR 7.0 million. The purchase price for this portfolio has been agreed at EUR 95 million. Profitable portfolio with long-term, secure tenant structure Together with the planned transactions, WCM AG's portfolio would thus grow to 51 properties in 37 locations with a market value (100% basis) of EUR 438 million. After finalisation of all announced transactions, the WCM portfolio would thus feature a total space of around 294,000 square meters, with a rental level of approx. 93 percent. On this basis, annualised rental income would total around EUR 29 million, with a c. 10-year WALT for the overall portfolio. After closing of the planned transactions and the cash capital increase, the pro-forma loan-to-value ratio (LTV) is scheduled to be approx. 55-60 percent. Over the medium term, the company aims to achieve an LTV of approx. 50 percent. WCM AG plans to establish a portfolio of over EUR 1 billion As a result of the attractive market for commercial properties, WCM AG is planning to build up a portfolio with a value of more than EUR 1 billion over the medium term. Its clear focus is on office and retail properties from the Core, Core Plus and in individual cases Value Add segments. About WCM AG Reflecting its strategic realignment implemented in 2014, WCM Beteiligungs- und Grundbesitz-AG (WCM AG) intends to position itself as one of the leading commercial property companies in Germany. As a holder of office and retail properties with a focus on major office locations, the company is on a dynamic growth path. In the mid-term WCM AG plans to build a portfolio with a value exceeding EUR 1 billion. The company utilises a comprehensive network for the acquisition of properties and value-enhancing portfolio management in order to generate long-term attractive rental income and a steady cash flow. WCM AG also intends to leverage further opportunities offered by the property market. The company's management, headed by CEO Stavros Efremidis, has extensive experience in the German property market in connection with the acquisition and management of properties and many years of capital market experience. The company has substantial corporate and trade tax loss carry-forwards. WCM AG (ISIN DE000A1X3X33) is listed on the Frankfurt Stock Exchange's General Standard. 02.06.2015 The DGAP 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: WCM Beteiligungs- und Grundbesitz-AG Friedrich-Ebert-Anlage 36 60325 Frankfurt am Main Germany Phone: +49 (0)69 244 333 199 Fax: +49 (0)3212/4243 773 E-mail: [email protected] Internet: www.wcm.de ISIN: DE000A1X3X33 WKN: A1X3X33 Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (General Standard), Hamburg, Stuttgart; Regulated Unofficial Market in Munich End of Announcement DGAP News-Service ---------------------------------------------------------------------------