DGAP-News: Godewind Immobilien AG / Key word(s): Acquisition/Real Estate
24.01.2019 / 11:42
Godewind Immobilien AG signs contract for EUR 140 million to acquire office property in Dusseldorf
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
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
Outlook: Further growth in the pipeline
About Godewind Immobilien AG
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
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|Company:||Godewind Immobilien AG|
|60329 Frankfurt am Main|
|Phone:||+49 (0) 69 2713973213|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|