KWG Kommunale Wohnen AG
KWG Kommunale Wohnen AG: KWG signs Purchase Agreement for 2,908 residential and commercial units
KWG Kommunale Wohnen AG / Key word(s): Real Estate/Agreement 20.12.2012 / 16:33 --------------------------------------------------------------------- - Largest acquisition in the company's history - Purchase price EUR 89.5 mn - Expected NAV increase by one EUR per share - Portfolio size grows to approx. 10,000 units Hamburg - 20 December 2012 - KWG Kommunale Wohnen AG, the long-term oriented property holding company of German residential real estate, today has signed the purchase agreement for the biggest acquisition in its history. As the economic ownership of the portfolio will be transferred to KWG per 31 Dec 2012 KWG will consolidate the portfolio on its balance sheet for 2012 already. The portfolio which has been acquired by means of an Asset Deal encompasses 2,908 residential and commercial units with a total lettable area of 202,146 sqm. Thus, KWG increases its total portfolio size to almost 10,000 units and has doubled its size over a period of 18 months only. KWG acquires the portfolio for a purchase price of EUR 89.5 mn, implying 9.2-times of the current annual rental income. KWG plans to increase rental income by employing significant refurbishment measures and by reducing the current vacancy of around 24% to the level of KWG's existing portfolio. For 2012e KWG expects a vacancy rate of approximately 2% in its core portfolio. KWG has already planned in detail respective measures to reduce vacancy and has secured related financing. After reducing the vacancy level KWG expects a further significant increase of the portfolio's yield. The purchase price per sqm amounts on EUR 443 only, while KWG's existing portfolio is valued at EUR 758 on KWG's balance sheet per 30 Jun 2012. The residential and commercial units are located in Berlin (608 units) and North-Rhine-Westphalia (2,300 units), i.a. in Bochum, Duesseldorf and Wuppertal. Through the acquisition KWG increases its portfolio in locations where it is already represented and expects to generate significant synergies. Recently acquired Barmer Wohnungsbau AG will function as KWG's strategic competence centre in North-Rhine-Westphalia and will handle the property management of KWG's portfolio within the region. KWG aims to sustainably increase the FFO-contribution of the portfolio to approximately EUR 3.0 mn by reducing vacancies, introducing refurbishments and adaptions of rent to market levels. Through the planned adjustment of the portfolio KWG expects a cash inflow in excess of EUR 5.0 mn in the next fiscal year. For 2012e KWG plans with an FFO of EUR 2.4 mn. KWG expects to increase its NAV per share by more than one Euro at first consolidation of the portfolio. Accounting for its new acquisition KWG expects annual rental income to increase from planned EUR 19.5 mn 2012e to EUR 32 mn in 2013e. KWG has entered into binding agreements with regards to the financing of the total purchase price. Debt financing will be provided at attractive conditions by a German Landesbank. The same bank has also agreed to finance planned refurbishment measures by means of a capex loan in the amount of EUR 15 mn. About KWG AG KWG Kommunale Wohnen AG is a long-term oriented owner and operator of German residential real estate units. The company acquires residential real estate portfolios at attractive conditions in promising micro-locations of metropolitan regions and German regional centres and sustainably increases their value through an active real estate asset management. By refurbishments to high energy efficiency standards incidental costs for tenants are being lowered. KWG AG covers the complete value chain from acquisitions to construction management and its own internal property management. As a result vacancies are being reduced and income from net cold rent is being increased. This leads to value enhancements of the properties, above average Returns on Equity and profitability. KWG's portfolio comprises more than 6,800 units including units from BWAG's portfolio. KWG's shares are listed in the Entry Standard of the Frankfurt Stock Exchange. Contact KWG Kommunale Wohnen AG Jan Hutterer Head of IR/PR Alstertor 9 20095 Hamburg Germany Tel.: +49/ 40/ 2263088-100 eMail: ir@kwg-ag.de www.kwg-ag.de End of Corporate News --------------------------------------------------------------------- 20.12.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KWG Kommunale Wohnen AG Alstertor 9 20095 Hamburg Germany Phone: 040 22 63 088 100 Fax: 040 22 63 088 200 E-mail: ir@kwg-ag.de Internet: www.kwg-ag.de ISIN: DE0005227342 WKN: 522734 Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service --------------------------------------------------------------------- 197502 20.12.2012
Latest News
Latest Reports
Upcoming Events
No Events found
Webcasts
No Webcasts found