DGAP-News

Lloyd Fonds establishing investment company for affordable housing construction

DGAP-News: Lloyd Fonds Aktiengesellschaft / Key word(s): Product Launch/Real
Estate
Lloyd Fonds establishing investment company for affordable housing
construction

15.11.2016 / 07:44
The issuer is solely responsible for the content of this announcement.

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CORPORATE NEWS

Lloyd Fonds establishing investment company for affordable housing
construction

- High need for subsidized housing in Germany

- Newly founded company Lloyd WohnWert GmbH & Co KGaA to open up the
market for the first time

- Attractive returns of 3 percent per year

- First asset already acquired in Hamburg via co-investment with Lloyd
Fonds AG

- Continuation of Lloyd Fonds AG's strategic realignment

November 15, 2016. After 18 months of preparations, Lloyd Fonds AG has
established Lloyd WohnWert GmbH & Co. KGaA (Lloyd WohnWert), the first
capital market-oriented investment company in Germany offering
institutional investors an opening to the growing market of government-
sponsored affordable housing construction. The company is a partnership
limited by shares (KGaA) in which the shareholders hold limited-partner
status and Lloyd Fonds AG acts as the owner of the managing general
partner. The shares will initially be placed with institutional investors
with a long-term investment horizon. The ensuing market flotation is
scheduled for the second half of 2017. Lloyd WohnWert is planning
attractive returns of 3 percent per year.

Housing construction company for metropolitan regions

The purpose of the company is to accumulate an attractive portfolio of real
estate assets in the subsidized affordable housing construction segment
with a long term "buy-to-hold" strategy financed via equity issues over the
coming years. In this way, a housing construction company active across
Germany is to be established. Investments will focus on metropolitan
regions in which the need for affordable housing is particularly pronounced
due to growing population numbers and rising rental and housing costs.

In a preliminary step, an attractive initial portfolio comprising projects
located in the Hamburg metropolitan region is being financed. "Government-
funded housing construction will play a decisive role in all future housing
construction projects in metropolitan regions in the future. Lloyd WohnWert
offers investors with a long-term investment horizon an opportunity of
entering this growth market with low risks and reliable cash flows," says