S&P ASSIGNS TLG 'BBB' RATING WITH POSITIVE OUTLOOK ON THE AROUNDTOWN MERGER

Berlin, 12 September 2019 - S&P Global Ratings (S&PGR) has rated TLG IMMOBILIEN AG (ISIN: DE000A12B8Z4) 'BBB' with a positive outlook. According to S&PGR, this positive outlook indicates that S&PGR could raise the rating on TLG if the company successfully merges with Aroundtown.

The positive outlook on TLG reflects S&PGR's belief that the company's commercial property portfolio will become substantially larger and more diversified post-merger with Aroundtown. According to S&PGR, the outlook is further supported by solid operating performance and favorable market fundamentals for TLG's office buildings in the main metropolitan areas of Germany. In addition, the increased scale of the portfolio would bring lower exposure to construction activity, whilst continuing value creative development activities.

Gerald Klinck, Chief Financial Officer of TLG IMMOBILIEN AG: "SPGR's positive outlook suggests that the potential creation of a pan-European commercial real estate market leader, with the ability to attract an enhanced credit rating, increase liquidity and realise further upside from joint development potential, would create meaningful commercial, operating and financing synergies for our shareholders."

Barak Bar-Hen, Chief Executive Officer of TLG IMMOBILIEN AG: "We see S&PGR's positive outlook on our rating as additional support to our strategy, in which a possible merger with Aroundtown in creating a market leader is a step in the right direction and in the interest of our shareholders; improving our rating and thereby securing better financing opportunities is one of the driving factors behind our motivation to evaluate a merger."
 

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ABOUT TLG IMMOBILIEN AG

For over 25 years, the listed company TLG IMMOBILIEN AG has owned and rented out commercial properties in selected promising locations in Germany. The company continuously develops its portfolio and actively generates value through strategic investments and selected property acquisitions. As at 30 June 2019, its portfolio contains properties worth EUR 4.6 bn. As at the same reporting date, the adjusted EPRA Net Asset Value per share amounted to EUR 29.77. The portfolio comprises office properties in cities including Berlin, Dresden, Frankfurt/Main, Leipzig and Rostock. It also contains a regionally diversified portfolio of retail properties, primarily in the neighbourhood shopping segment, in promising micro-locations as well as seven hotels in top central locations. The properties of TLG IMMOBILIEN AG stand out not only due to their excellent locations but also because of their long-term rental or lease agreements. Its highly qualified employees guarantee extensive local market expertise at its individual locations.