Godewind Immobilien AG acquires office building near Munich for EUR 30 million
- Office building in the greater Munich area with a total rental area of some 17,600 square metres
- Vacancy rate of some 51 percent provides significant potential for value creation
- Negotiations for the purchase of further assets should be completed within the next few months
Frankfurt am Main, 19 December 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 million or EUR 1,703 per square meter as part of an asset deal. The property is situated in Business Park ExpoGate in Aschheim-Dornach directly on the city border to Munich and has a rental area of 17,612 square metres and 263 car parking spaces. Its proximity to Munich and the optimal infrastructure have attracted many well-known companies to settle in Aschheim-Dornach. The transaction is expected to be closed latest by the end of February 2019.
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 51 percent and the average remaining lease term (WALT) is 3.9 years. The net cold rent amounts to currently aroung EUR 1.1 million with a current occupancy rate of 49 percent. The average office rent currently amounts to EUR 9.90 per square meter. Godewind will significantly improve these KPIs based on proactive asset management. The development potential shall be realised, among other things, by reducing vacancies and concluding new leases. The current average rents are substantially below the current market rent of around EUR 12.50 per square meter for office space. After the expected vacancy reduction the property will generate around 140 percent higher rental income of more than EUR 2.6 million annually. The “Funds from Operations” (FFO) before “overheads” would then amount to approximately EUR 1.66 million, or an FFO return on equity of around 10 percent before “overheads”. In this context, Godewind’s tax loss carry-forwards will have a positive effect in future.
Outlook: further acquisitions in the pipeline
In combination with other already acquired properties the company is seeking for a financing structure with a “Net LTV” of around 50 percent on attractive capital market terms in the near future. After the already executed transactions totalling a gross purchasing volume of almost EUR 600 million, Godewind plans to expand its portfolio rapidly. Ongoing negotiations with further sellers are expected to be finalized within the next few months.
About Godewind Immobilien AG
Based in Frankfurt, Godewind Immobilien AG is a listed real estate company specialising in German commercial property. The company’s acquisition focus lies on building up an attractive commercial real estate portfolio 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. Including the latest acquisitions Godewind has an office portfolio of almost EUR 600 million. 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 (XETRA).
For more information, please visit https://www.godewind-ag.com
Investor Relations contact
Godewind Immobilien AG
Tel.: +49 (0)69 257 375 190
Kirchhoff Consult AG
Tel.: +49 (0)40 6091 8665
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.
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