DGAP-News: Godewind Immobilien AG / Key word(s): Acquisition

24.10.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


Godewind Immobilien AG acquires office building in Munich valued at around EUR 30.5 million

  • Office building in the greater Munich area with a total rental area of some 18,820 square metres
  • Additional reserve for expansion of around 15,500 square metres
  • Vacancy rate of some 63 percent provides significant potential for value creation
  • Negotiations for the purchase of further assets should be completed in Q4

 

Frankfurt am Main, 24 October 2018 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a real estate company specialising in German commercial properties, has acquired an office property in the greater Munich area for a net price of EUR 30.5 million or EUR 1,621 per square meter as part of an asset deal. The property is situated in an industrial park in Kirchheim bei München and has a rental area of some 18,820 square metres and 683 car parking spaces. Its proximity to Munich and optimal infrastructure has attracted many well-known companies to set up in Kirchheim bei München. The transaction is set to close by end of the year.

Office building with significant value added potential
In line with Godewind’s business strategy the property offers significant potential for adding value. The vacancy rate currently stands at some 63 percent and the average remaining lease term (WALT) is 3.9 years. The net cold rent amounts to currently aroung EUR 0.8 million or EUR 11.50 per square meter with a current rental level of 37 percent. The development potential is to be raised, among other things, by means of vacancy rate reduction, rent increases and the renewal of rental agreements with anchor tenants. When it is fully let, which is planned for 2020, annualized rental income would rise to EUR 2.3 million based on current market rents. This corresponds to an FFO before overheads and after refinancing of some EUR 1.4 million, or an FFO return on equity of around 11.5 percent.

In addition, the office complex has a further 15,500 square metres available for expansion. Godewind is already in talks with a large healthcare provider about using this space.

Outlook: further acquisitions in the pipeline
The acquisition will initially be financed with equity raised in the course of the IPO in April. Subsequently the property will be leveraged with a LTV of around 50 percent.

Once the transaction has been completed Godewind will have a property portfolio of some EUR 100 million. Further acquisitions are being prepared for this year. In the months ahead the remaining funds from the IPO and additional borrowing are to be used to finance further acquisitions.

About Godewind Immobilien AG
Based in Frankfurt, Godewind Immobilien AG is a real estate company specialising in German mixed-use portfolios. The company focuses on building up an attractive portfolio of commercial properties, with an emphasis on office buildings. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by the regular realisation of added value potential. In the medium term, the aim is to build a commercial real estate portfolio of around three billion euros with the help of the company’s wide-ranging network and by means of value-added acquisitions.

Based on its internal portfolio and asset management, Godewind Immobilien AG will manage commercial properties cost-effectively, enter into long-term tenancy agreements and thus increase its enterprise value. The company has tax loss carry-forwards for corporation and trade tax, as well as a tax-free capital reserve. The shares in Godewind Immobilien AG are traded in the Prime Standard segment on the Frankfurt Stock Exchange (FWB).

For more information, please visit https://www.godewind-ag.com

Contact details

Investor Relations contact
Gunnar Janssen
Godewind Immobilien AG
Tel.: +49 (0)69 257 375 190
Email: g.janssen@godewind-ag.com

Press contact
Jan Hutterer
Kirchhoff Consult AG
Tel.: +49 (0)40 6091 8665
Email: godewind-ag@kirchhoff.de

Disclaimer:
These materials are for informational purposes only and are not intended to constitute, and should not be construed as, an offer to sell or subscribe for, or the announcement of a forthcoming offer to sell or subscribe for, or a solicitation of any offer to buy or subscribe for, or the announcement of a forthcoming solicitation of any offer to buy or subscribe for, ordinary shares in the share capital of Godewind Immobilien AG (the “Company”) and such shares (the “Shares”) in the United States or in any other jurisdiction.

This publication serves as a notification. The shares offered have already been sold.


24.10.2018 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.
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