DGAP-News

DO Deutsche Office AG with attractive property acquisition in Stuttgart

DGAP-News: DO Deutsche Office AG / Key word(s): Real Estate
DO Deutsche Office AG with attractive property acquisition in
Stuttgart

07.07.2015 / 07:45

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- Attractive transaction conditions: Annual rental income of 3.8 million
euro and gross initial yield of 13.9%

- Tenant in the fully leased property is a leading automobile
manufacturer

- Positive annual FFO contribution of 3.4 million euro expected

Cologne, Stuttgart, July 7, 2015. DO Deutsche Office AG ("Deutsche Office",
symbol: PMOX, ISIN: DE000PRME020) announces the acquisition of an office
property in Vaihinger Straße 131, Stuttgart/Vaihingen.

The tenant in the fully leased office property with a total lettable area
of 21,411 square metres and an annual gross rental income of approximately
3.8 million euro is a leading German automobile manufacturer. The purchase
price of 27.2 million euro produces an attractive gross initial yield of
13.9%, or just 7.2 times the annual gross rental income. The lease with
unlimited term can be terminated within a notice period of 2 years.

With an attractive gross initial yield the property matches the acquisition
criteria set by Deutsche Office, which aims at acquiring properties with
short leases or vacancy in metropolitan areas in Germany to achieve value
accretion through active asset management. The Stuttgart region - with the
lowest vacancy rate (approx. 5%) in the most important office markets in
Germany - offers Deutsche Office ideal conditions and excellent
value-creation potential.

"Following successful portfolio optimization and selective exploitation of
attractive sales opportunities with individual properties, we now begun
with acquisitions and started with an attractive office property in
Stuttgart," explains Jürgen Overath, Spokesman of the Executive Board of
Deutsche Office.

Half of the purchase price of the Stuttgart/Vaihingen property is financed
using uncommitted funds from the sales of other properties and the other
half comes from bank debt.

Thanks to the favorable transaction- and financing conditions, an annual
contribution to funds from operations (FFO) of 3.4 million euro is
expected. The transaction will most likely be finalized in Q3 2015.

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