ADO Properties enters agreement to sell a residential portfolio in Berlin

- Portfolio comprises 23 properties with a total of around 5,800 residential units in the Spandau and Reinickendorf districts

- Sale is part of ADO Properties' value creation strategy

Berlin, September 26, 2019. ADO Properties S.A. (the "Company") has today announced the entering into of a share purchase agreement (the "Share Purchase Agreement") with Gewobag Wohnungsbau Aktiengesellschaft Berlin for the sale of 100% of the shares of certain subsidiaries owning 23 properties consisting in aggregate of approximately 5,800 residential apartment units. The sale price for the shares is EUR 920 million, less approximately EUR 340 million of net debt of the companies being sold. The assets are located in the Spandau and Reinickendorf districts in the West and the North of Berlin,

The Share Purchase Agreement is subject to a number of customary conditions, including merger control approvals.

Since purchasing the units, ADO Properties has made significant investments in the portfolio and thus substantially improved the quality of living. At the same time, the Company carefully implemented modernization projects while keeping rents low.

"When we acquired the portfolios in 2015, some of the properties and outdoor facilities were no longer up-to-date and in need of renovation. We have spent significant time and effort in renovation of residential units and green spaces and bringing them up to modern tenant needs," explained Ran Laufer, CEO of ADO Properties S.A.". We are always seeking ways to improve the quality of the properties we own for those who live there and create value that is sustainable - not only from a financial point of view. We have therefore strengthened and promoted tenants' sense of community and responsibility for their neighbourhood with events such as neighbourhood festivals", emphasized Laufer.

As a result of the improved quality of living, the occupancy rate of the portfolio has recently increased to approximately 98 percent. The portfolio also has excellent potential for further residential development through densification. There is space for several hundred additional residential units on undeveloped plots next to the existing buildings.

Ran Laufer also stated: "Berlin is one of the largest and most dynamic residential property markets in Europe. Demand for modern living space remains high and we see considerable growth potential here. We will continue to examine possibilities to recycle capital by selling buildings which we have improved and by acquiring buildings and portfolios that have more upside."

As of the Company's last reported June 30, 2019 financial statements, the loan to value ratio of the Company as a result of the sale is expected to decrease from 38% to approximately 21% and the EPRA Net Asset Value as a result of the sale is expected to increase to EUR 62.60 per share. ADO Properties S.A. is considering various opportunities with respect to the proceeds from the sale, including repaying existing indebtedness, acquiring additional real estate portfolios, and for general corporate purposes.

Definitions of our alternative performance measures like loan to value ratio and EPRA NAV are available in our latest financial report under https://www.ado.properties/websites/ado/English/4000/publications.html in the Financial Performance Indicators section.

About ADO Properties S.A.

ADO Properties is a company that focuses on the residential real estate sector and owns a property portfolio of around 24,000 units in Berlin. The company operates an entirely integrated, scalable in-house platform that includes a dedicated property administration. The portfolio of ADO Properties is concentrated in central locations inside Berlin's S-Bahn-Circle and in attractive districts on the city's periphery.

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