Corporate News

ADO Properties S.A.: Agreement Entered for Sale of a Real Estate Portfolio

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, most of which were acquired in 2015

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.

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

Ran Laufer, Chief Executive Officer of the Company, said: "We are delighted to have been able to reach this agreement with Gewobag. The sale of this portfolio is consistent with the Company's value creation strategy that involves not only acquiring properties and portfolios where it believes it can create value, but also selectively selling properties where the opportunity to do so are on terms favorable to the Company".

Definitions of our alternative performance measures like loan to value ratio and EPRA NAV are available in our latest financial report under

http://ado.properties/websites/ado/English/4000/publications.html in the Financial Performance Indicators section.

About ADO Properties
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