Godewind Immobilien AG signs contract to acquire Pentahof office property in Hamburg
- Pentahof office complex with approximately 24,700 square metres total lettable area at Hamburg Airport acquired.
- Net purchase price is EUR 60.6 million.
- Property boasts clear potential for appreciation.
- Negotiations for purchasing further properties are expected to wind up by the end of 2018.
Frankfurt am Main, 19 November 2018 – 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 Hamburg. The asset deal is for the office property in Hamburg Fuhlsbüttel known as Pentahof. Pentahof is located at Hamburg Airport and has a total lettable area of about 24,747 square metres, along with 347 underground parking spaces and 113 outdoor spaces. The purchase price is EUR 60.6 million, or EUR 2,449 per square metre on average. The transaction is expected to be closed by the end of this year.
Property in attractive location with potential for appreciation
Pentahof is an office complex with an excellent location close to the airport in Hamburg Fuhlsbüttel. Annualised net basic rent will be EUR 2.95 million or about EUR 9.41 (office rent) per square metre (per month), which is considerably lower than current market rents. The property is fully let, and the weighted average lease term (WALT) is 4.9 years. The anchor tenant is a global petroleum company with an outstanding credit rating. The annualised funds from operations (FFO) before overheads is more than EUR 2.13 million. This represents an initial FFO yield of about 7.7 per cent before overheads. Here, the tax loss carry-forwards of Godewind will have a positive effect in the future. Godewind will continue to optimise the asset through active asset management. In specific terms, it will leverage the property’s development potential for one by raising rents and extending leases with anchor tenants.
Future financing opens up further growth potential for Godewind
The acquisition will initially be financed from internal funds raised as part of the IPO in April. In the short term, Godewind is aiming for a financing structure with a long-term net LTV of about 50 per cent, in combination with other previously acquired properties, in line with current capital market conditions.
Outlook: Further acquisitions in the pipeline
After closing on this and other purchases, Godewind plans to continue expanding its portfolio of business properties even before the year is out. Negotiations with other sellers are under way.
With the funds from the planned financing and the remaining cash holdings, the company intends to make more acquisitions before the end of the year. Once it closes on the current sale, expected by the end of 2018, Godewind will have a property portfolio amounting to more than EUR 330 million.
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
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.
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