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ADLER Real Estate AG: ADLER Real Estate secures acquisition of a portfolio with around 6,750 units

DGAP-News: ADLER Real Estate AG / Key word(s): Miscellaneous
ADLER Real Estate AG: ADLER Real Estate secures acquisition of a
portfolio with around 6,750 units

27.10.2014 / 09:36

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ADLER Real Estate secures acquisition of portfolio with around 6,750 units

- Acquisition of housing association in Wilhelmshaven

- Value of the portfolio considerably above the EUR 200 million mark

- Housing stock to increase to 32,000 units

Hamburg, 27 October 2014. ADLER Real Estate AG, Frankfurt / M., (ISIN
DE0005008007) has agreed to acquire a majority stake of a large residential
property portfolio comprising of c. 6,750 units. The Company has yet again
secured another major portfolio acquisition in line with its ongoing growth
strategy bringing ADLER's property portfolio to c. 32,000 residential units
by year end 2014. The current portfolio, including the latest acquisitions
is expected to generate c. EUR 108 million in net rental income on an
annualized basis.

Upon completion of the transaction the portfolio is expected to generate
positive cash flows and will thus continue to contribute to ADLER's ongoing
Group success. Since consolidating ESTAVIS AG in H1 2014 together with the
other portfolio acquisitions, Net Asset Value according to EPRA guidelines
increases by c. 15% from EUR 11.27 to around EUR 13 per share. The expected
EPRA NAV per share on a fully diluted basis is expected to grow from EUR
9.45 as of H1 2014 to c. EUR 11 (the dilution resulting from the
outstanding convertible bonds currently trading in the money).

The portfolio was acquired by way of the takeover of the majority stake in
Jade mbH, a housing association located in Wilhelmshaven, on the North Sea
coast of Lower Saxony. Jade mbH is not only the holding company but also
the property and facility manager of the portfolio. The portfolio value is
currently considerably above the EUR 200 million mark. "We have once again
secured the acquisition of a residential property portfolio in which the
fair value exceeds the transaction one" says Axel Harloff, CEO of ADLER
Real Estate AG. "Moreover, we will also have a very solid housing stock
which is expected to increase in value over time."

Specifically, Jade mbH comprises of 6,641 residential and 31 commercial
units with 74 apartments destined to student accommodation. The properties
have been very well maintained and are in a very good condition, with
virtually no deferred maintenance or capex backlog and are located in the