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alstria office REIT-AG: Acquisition of a portfolio of twelve office buildings in Hamburg, Düsseldorf and Berlin

DGAP-News: alstria office REIT-AG / Key word(s): Acquisition alstria office REIT-AG: Acquisition of a portfolio of twelve office buildings in Hamburg, Düsseldorf and Berlin 24.04.2017 / 20:42 The issuer is solely responsible for the content of this announcement. Press release

Acquisition of a portfolio of twelve office buildings in Hamburg, Düsseldorf and Berlin


- alstria acquires portfolio of twelve office buildings located in Hamburg, Düsseldorf and Berlin

- Acquisition is accretive to the FFO per share, a full year impact on revenues of EUR 9.9 m and FFO of around EUR 7.3 m expected

- Vacancy of 21.0% offers potential for further value creation

Hamburg, April 24, 2017 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1), the leading German office REIT, announces the acquisition of an office portfolio from Office First.

Portfolio perfectly matches alstria's acquisition criteria

Pursuant to a purchase agreement dated April 24, 2017, alstria office REIT-AG acquires an office property portfolio for a total consideration (all-in-cost) of EUR 168.5 m (EUR 1,590 per sqm, yield on cost of 5.9%). The twelve properties, located in Hamburg, Düsseldorf and Berlin are generating a passing rent of around EUR 9.9 m per annum and have a weighted average unexpired lease term (WAULT) of 3.4 years. The portfolio perfectly matches alstria's acquisition criteria regarding its location, average property size and asset management requirements. The vacancy in the portfolio of 21.0% will allow alstria to further improve the cashflow profile going forward.

Financing by available cash and bank debt

The portfolio will be financed with EUR 108.5 m of existing cash and EUR 60.0 m of new debt which represents a LTV of around 36% in line with the Company's mid-term deleveraging target.

Acquisition increases alstria's FFO by EUR 7.3 m p.a.

The favorable fundamentals of the transaction are expected to increase alstria's funds from operations (FFO) by approximately EUR 7.3 m on a full-year basis. The closing of the transaction, which is subject to customary conditions precedents, is expected to take place towards mid-2017.