DGAP-News

KWG Kommunale Wohnen AG: KWG Kommunale Wohnen AG signs largest acquisition in its history and secures rights to 77.3% of shares in Barmer Wohnungsbau AG

DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Mergers &
Acquisitions
KWG Kommunale Wohnen AG: KWG Kommunale Wohnen AG signs largest
acquisition in its history and secures rights to 77.3% of shares in
Barmer Wohnungsbau AG

06.03.2012 / 07:53

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  - Dominating control of company with a portfolio of 1,391 residential
    units in KWG Kommunale Wohnen AG´s target region of
    North-Rhine-Westphalia.

  - Positive Net Cold Rent contribution of approximately EUR 4.8 million,
    expected FFO-increase of around EUR 1.1 million in current fiscal year.

  - Positive cash contribution from dividend payments to KWG Kommunale
    Wohnen AG expected already in 2012.

  - Expected increase of NNNAV per share from the transaction by around EUR
    1.00.

  - Expected low LTV of around 20% according to IFRS standards on Barmer
    Wohnungsbau AG level.

Hamburg, 06 March 2012 - KWG Kommunale Wohnen AG (KWG AG hereafter), the
German long-term oriented German property holding company, has secured
rights to 77.3% of the shares in Barmer Wohnungsbau AG. The transaction
represents the largest step in growth in the history of KWG AG. The parties
involved agreed to keep the purchase price confidential. A part of the
consideration will be paid in 1.5 million newly to be issued KWG shares
that are being valued at EUR 7.54 per share. The transaction has already
received the necessary approvals by the boards of each company.

Through the transaction KWG AG substantiates its strategy to profitably
leverage the operating platform it created over the past years and which it
has turned FFO-positive already on a stand-alone basis through significant
investments into its properties in the past.

Barmer Wohnungsbau AG owns 1,391 residential units with a total lettable
area of approximately 90,600 square meters within the city of Wuppertal.
The portfolio has been extensively refurbished over the past years.  Annual
Net Cold Rent currently amounts to approximately EUR 4.8 million and
reflects a discount of around 20 % vs. market prices for comparable
apartments. The residential portfolio´s vacancy rate amounts to less than 1
%.

Barmer Wohnungsbau AG as per today is sustainably profitable on a cash
basis. Consequently the transaction will be instantly accretive to the
cash-effective Group Result of KWG AG. Barmer Wohnungsbau AG is expected to
distribute a cash dividend for 2011 to KWG AG already in the current fiscal
year.

On the basis of its current stake in Barmer Wohnungsbau AG KWG AG expects
an increase of the FFO for the current fiscal year by approximately EUR 1.1
million and maintains its target to be able to pay its shareholders a