15.11.2016
Lloyd Fonds Aktiengesellschaft DE000A12UP29
DGAP-News: Lloyd Fonds establishing investment company for affordable housing construction
DGAP-News: Lloyd Fonds Aktiengesellschaft / Key word(s): Product Launch/Real
Estate
Lloyd Fonds establishing investment company for affordable housing
construction
15.11.2016 / 07:44
The issuer is solely responsible for the content of this announcement.
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CORPORATE NEWS
Lloyd Fonds establishing investment company for affordable housing
construction
- High need for subsidized housing in Germany
- Newly founded company Lloyd WohnWert GmbH & Co KGaA to open up the
market for the first time
- Attractive returns of 3 percent per year
- First asset already acquired in Hamburg via co-investment with Lloyd
Fonds AG
- Continuation of Lloyd Fonds AG's strategic realignment
November 15, 2016. After 18 months of preparations, Lloyd Fonds AG has
established Lloyd WohnWert GmbH & Co. KGaA (Lloyd WohnWert), the first
capital market-oriented investment company in Germany offering
institutional investors an opening to the growing market of government-
sponsored affordable housing construction. The company is a partnership
limited by shares (KGaA) in which the shareholders hold limited-partner
status and Lloyd Fonds AG acts as the owner of the managing general
partner. The shares will initially be placed with institutional investors
with a long-term investment horizon. The ensuing market flotation is
scheduled for the second half of 2017. Lloyd WohnWert is planning
attractive returns of 3 percent per year.
Housing construction company for metropolitan regions
The purpose of the company is to accumulate an attractive portfolio of real
estate assets in the subsidized affordable housing construction segment
with a long term "buy-to-hold" strategy financed via equity issues over the
coming years. In this way, a housing construction company active across
Germany is to be established. Investments will focus on metropolitan
regions in which the need for affordable housing is particularly pronounced
due to growing population numbers and rising rental and housing costs.
In a preliminary step, an attractive initial portfolio comprising projects
located in the Hamburg metropolitan region is being financed. "Government-
funded housing construction will play a decisive role in all future housing
construction projects in metropolitan regions in the future. Lloyd WohnWert
offers investors with a long-term investment horizon an opportunity of
entering this growth market with low risks and reliable cash flows," says
Dr. Torsten Teichert, CEO of Lloyd Fonds AG. "In the medium term, we see
Lloyd WohnWert as a key investor in affordable housing construction
throughout Germany."
First asset already acquired in Hamburg
At the beginning of November 2016, Lloyd Fonds AG acquired a preliminary
asset, which will be contributed to Lloyd WohnWert as a co-investment.
Built in 2006 in the Hamburg suburb of Tonndorf, the building is located
close to the well-known media company "Studio Hamburg" and comprises 22
subsidized apartments as well as a number of small retail stores. The
purchase price is in excess of EUR 3 million.
Qualified management
Lloyd WohnWert has qualified and experienced management comprising Holger
Schmitz, general manager of Lloyd Fonds AG, and Timo Wolf, head of real
estate at Lloyd Fonds AG and a former member of the management board of TAG
Gewerbeimmobilien AG. Michael Sachs, formerly a management board member of
the city-owned Hamburg housing construction company SAG GWG and head of the
department of urban development until 2015, is chairman of the supervisory
board.He has been chairman of the supervisory board of Berlin housing
construction company GEWOBAG since 2015 and is currently also chairman of
the council of experts established by the German Federal Ministry of
Construction for the implementation of the housing construction initiative.
Michael Sachs is one of the leading experts in Germany on subsidized
housing construction. The other members of the supervisory board are Dr.
Torsten Teichert, CEO of Lloyd Fonds AG, Wilfried Jastrembski, head of real
estate clients at Haspa, and the real estate expert Hanno Weiß.
Strong demand for investments with sustained stable cash flows in an
attractive market
With the establishment of Lloyd WohnWert GmbH & Co. KGaA, Lloyd Fonds AG is
positioning itself as a pioneer in a growth market. On the other hand,
institutional investors in particular are seeking attractive investments in
real assets and are planning to double the investments in this area by 2020
according to a recent study by PwC. On the other hand, all the German
states are stepping up efforts to provide affordable housing and are
looking for investors for these projects. There is a shortage of affordable
housing in the metropolitan regions in particular. In Hamburg, only 65,000
subsidized dwellings are available despite actual demand for 218,000 such
dwellings. Given the shortage of affordable housing and the simultaneous
increase in the population of cities, the states and municipalities are
committed to providing additional housing. In Hamburg alone, 4,000 new
subsidized dwellings are to be built each year.
Subsidized housing construction an attractive investment
Whereas subsidized housing construction was originally used to develop
outer urban regions, modern urban planning is emphasizing the integrative
development of large mixed residential areas in inner-city regions in
particular. Thus, for example, Hamburg has introduced the "one-third mix"
formula under which new construction projects generally comprise one third
subsidized housing construction, one third free housing construction and
one third owner-occupied dwellings. Nearly all German cities have adopted
comparable targets. This is giving rise to mixed affordable residential
areas which make good affordable sense and are also economically
attractive. With an occupancy rate of close to 100 percent as a rule,
subsidized housing construction in large cities generates stable long-term
cash flows, offering a unique opportunity/risk profile in the real estate
segment.
Lloyd Fonds AG continuing its realignment as announced, generating earnings
of around EUR 2.2 million as of September 30, 2016
With the establishment of Lloyd WohnWert GmbH & Co. KGaA, Lloyd Fonds AG is
continuing to reposition itself as an innovative asset and investment
manager in line with previous announcements. "Driven by the planned growth
of Lloyd WohnWert , the assets managed by Lloyd Fonds AG will rise from a
current figure of around EUR 1.4 billion to EUR 3 billion in the medium
term, thus driving its sustained profit growth.
Lloyd Fonds AG generated post-tax earnings of EUR 2.2 million as of the end
of the third quarter. On this basis, the company has confirmed its full-
year guidance for 2016 of earnings at the upper end of a range of two to
three million euros.
Important note:
This press release is provided solely for information purposes and
constitutes neither an offer to sell nor an invitation to buy securities.
An offer is made solely via and on the basis of a published selling
prospectus. A decision to invest in any securities publicly offered by the
issuer should only be made on the basis of the published prospectus.
This press release is not intended for publication in the United States and
does not constitute an offer to buy securities in the United States of
America, Australia, Canada, Japan or any other jurisdictions in which such
an offer is not permitted by law . Securities may only be sold or offered
for sale in the United States of America subject to prior registration
under the U.S. Securities Act of 1933 in its present form ("U.S. Securities
Act") or, in the absence of prior registration, only on the basis of an
order of exception. The Company's shares are not and will not be registered
in accordance with the provisions of the U.S. Securities Act or in
accordance with any legislation in force in any state of the United States
of America and are not sold or offered for purchase in the United States of
America.
This press release is addressed solely to persons who (i) are outside the
United Kingdom of Great Britain, or (ii) have professional experience with
investment matters coming within the definition of "investment
professionals" as provided for in Article 19(5) of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2005 as most recently
amended (the "Order") or come within the definition of Article 49 (2) (a)
to (d) of the Order ("high net worth companies, unincorporated
associations, etc.") or another exception provided for in the Order (these
persons collectively known as "qualified persons"). All securities referred
to herein are only available to qualified persons for investment and any
request, offer or agreement to subscribe to, buy or otherwise acquire such
securities may only be made towards qualified persons. Persons who are not
qualified persons should under no circumstances rely or act on any part of
this press release.
This press release contains forward-looking statements. These statements
reflect the current views, expectations and assumptions of the company's
management and are based on information known to it on the present date.
Forward-looking statements are not guarantees of future performance and
involve known and unknown risks and uncertainties. Actual future results
and developments affecting the company may differ materially from the
expectations and assumptions presented here due to various factors. These
factors include but are not limited to changes in the general economic and
competitive situation. In addition, future results and developments could
be affected by the performance of financial markets, fluctuations in
exchange rates, changes in national and supranational law and other risks
and uncertainties. The company assumes no obligation to update any of the
forward-looking statements contained in this report.
About Lloyd Fonds AG:
As an investment- and assetmanager, Lloyd Fonds AG has been specialising in
alternative real assets-based investments and capital investments and their
professional management for more than 20 years. It currently manages
investments of around EUR 3.5 billion, particularly in the areas of
shipping, real estate, aircraft and renewable energies. To date the
Hamburg-based company has initiated capital investments with an investment
volume of around EUR 5 billion. Lloyd Fonds has been listed on the
Frankfurt Stock Exchange since 2005 (WKN A12UP2, ISIN DE000A12UP29).
Contact:
Susanne Maack
Lloyd Fonds AG
Amelungstraße 8-10
20354 Hamburg
Tel: +49-40-325678-132
Fax: +49-40-325678-99
Mail: [email protected]
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15.11.2016 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Lloyd Fonds Aktiengesellschaft
Amelungstr. 8-10
20354 Hamburg
Germany
Phone: +49 (0)40 32 56 78-0
Fax: +49 (0)40 32 56 78-99
E-mail: [email protected]
Internet: www.lloydfonds.de
ISIN: DE000A12UP29
WKN: A12UP2
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Munich, Stuttgart, Tradegate Exchange; Open
Market (Entry Standard) in Frankfurt
End of News DGAP News Service
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520739 15.11.2016
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