Corporate News

Godewind Immobilien AG signs contract for EUR 140 million to acquire office property in Dusseldorf

• Herzog-Terrassen office complex with approximately 55,700 square metres total lettable area and approximately 1,000 underground parking spaces in the center of Dusseldorf
• Net purchase price is EUR 140 million
• Annualized net rent of currently EUR 6.7 million
• Vacancy rate of around 45 per cent offers significant growth potential

Frankfurt am Main, 24 January 2019 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a real estate company specialising in German commercial properties, has signed another purchase agreement to acquire an office complex in an off market transaction. The asset deal is for the office property known as Herzog-Terrassen in the office subsegment of the city center of Dusseldorf. The Herzog-Terrassen are located in Dusseldorf-Friedrichstadt, one of the most attractive parts in the center of Dusseldorf just 300 meters off Königsallee. The property is situated on a 16,300 squaremeter plot. Besides 962 underground parking spaces, the office complex offers very flexible office space for banks, accountants and other service providers with technically sophisticated equipment. The purchase price ist EUR 140 million for a total lettable area of about 55,717 square metres or EUR 2,513 per square metre on average. The closing of the transaction is expected by the end of April this year. The seller of this transaction was advised by JLL.

Property with extraordinary infrastructure and significant potential for appreciation
Herzog-Terrassen is a modern office complex in an excellent location with substantial appreciation potential. Thus, the property fits perfectly with Godewind’s business strategy. The infrastructure comprises a security service, an inhouse restaurant, coffee shops and one of the largest underground car parks in Dusseldorf with charging stations for electric cars and truck access. A day care facility for children, VIP-boxes with offices and terraceses including a spectacular view of the city are additional features of the building.

The vacancy rate is currently at around 45.4 per cent. Annualised net basic rent will be EUR 6.7 million reflecting a gross yield of around 4.8 per cent. Amongs the anchor tenants are banks and corporates from the trading-, service and financial-industry. The weighted average lease term (WALT) is about 6.5 years. Godewind will optimise the asset through active asset management. It will leverage the property’s development potential for one by raising rents and extending leases with anchor tenants. The average rent is about EUR 19.10 (office rent) per square metre (per month), which is lower than current market rents. The envisaged vacancy reduction along with rent adjustments should be accomplished by 2021. Fully let the asset will then achieve around 60 per cent higher rental income of more than EUR 11 million per annum based on current market rents The average funds from operations (FFO) before overheads and after refinancing would then achieve around EUR 8.4 million. This corresponds to an FFO return on equity of about 10.1 per cent before overheads. Here, the tax loss carry-forwards of Godewind will have a positive effect in the future.

Market environment on debt capital markets offers potential for attractive financing
An attractive financing structure shall be arranged until the closing of the transaction. Godewind is aiming for a financing structure with a long-term net LTV of 45 to 55 per cent.

Outlook: Further growth in the pipeline
Since October 2018 Godewind has executed transactions with a total gross purchasing volume of around EUR 740 million and plans to further optimize the existing assets and to grow the portfolio also organically. The portfolio offers significant appreciation potential with an acquired vacancy of 28 per cent or 75,500 squaremeter.

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 approx. EUR 740 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
Gunnar Janssen
Godewind Immobilien AG
Tel.: +49 (0)69 271 3973 213
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.