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DGAP-News KWG Kommunale Wohnen AG: KWG signs Purchase Agreement for 2,908 residential and commercial units

Nachrichtenquelle: EQS Group AG
20.12.2012, 16:33  |  435   |   |   

DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Real
KWG Kommunale Wohnen AG: KWG signs Purchase Agreement for 2,908
residential and commercial units

20.12.2012 / 16:33

- Largest acquisition in the company´s history
- Purchase price EUR 89.5 mn
- Expected NAV increase by one EUR per share
- Portfolio size grows to approx. 10,000 units

Hamburg - 20 December 2012 - KWG Kommunale Wohnen AG, the long-term
oriented property holding company of German residential real estate, today
has signed the purchase agreement for the biggest acquisition in its
history. As the economic ownership of the portfolio will be transferred to
KWG per 31 Dec 2012 KWG will consolidate the portfolio on its balance sheet
for 2012 already. The portfolio which has been acquired by means of an
Asset Deal encompasses 2,908 residential and commercial units with a total
lettable area of 202,146 sqm. Thus, KWG increases its total portfolio size
to almost 10,000 units and has doubled its size over a period of 18 months

KWG acquires the portfolio for a purchase price of EUR 89.5 mn, implying
9.2-times of the current annual rental income. KWG plans to increase rental
income by employing significant refurbishment measures and by reducing the
current vacancy of around 24% to the level of KWG´s existing portfolio. For
2012e KWG expects a vacancy rate of approximately 2% in its core portfolio.
KWG has already planned in detail respective measures to reduce vacancy and
has secured related financing. After reducing the vacancy level KWG expects
a further significant increase of the portfolio´s yield. The purchase price
per sqm amounts on EUR 443 only, while KWG´s existing portfolio is valued
at EUR 758 on KWG´s balance sheet per 30 Jun 2012.

The residential and commercial units are located in Berlin (608 units) and
North-Rhine-Westphalia (2,300 units), i.a. in Bochum, Duesseldorf and
Wuppertal. Through the acquisition KWG increases its portfolio in locations
where it is already represented and expects to generate significant
synergies. Recently acquired Barmer Wohnungsbau AG will function as KWG´s
strategic competence centre in North-Rhine-Westphalia and will handle the
property management of KWG´s portfolio within the region.

KWG aims to sustainably increase the FFO-contribution of the portfolio to
approximately EUR 3.0 mn by reducing vacancies, introducing refurbishments
and adaptions of rent to market levels. Through the planned adjustment of
the portfolio KWG expects a cash inflow in excess of EUR 5.0 mn in the next
fiscal year. For 2012e KWG plans with an FFO of EUR 2.4 mn. KWG expects to
increase its NAV per share by more than one Euro at first consolidation of
the portfolio. Accounting for its new acquisition KWG expects annual rental
income to increase from planned EUR 19.5 mn 2012e to EUR 32 mn in 2013e.

KWG has entered into binding agreements with regards to the financing of
the total purchase price. Debt financing will be provided at attractive
conditions by a German Landesbank. The same bank has also agreed to finance
planned refurbishment measures by means of a capex loan in the amount of
EUR 15 mn.

About KWG AG

KWG Kommunale Wohnen AG is a long-term oriented owner and operator of
German residential real estate units. The company acquires residential real
estate portfolios at attractive conditions in promising micro-locations of
metropolitan regions and German regional centres and sustainably increases
their value through an active real estate asset management. By
refurbishments to high energy efficiency standards incidental costs for
tenants are being lowered. KWG AG covers the complete value chain from
acquisitions to construction management and its own internal property
management. As a result vacancies are being reduced and income from net
cold rent is being increased. This leads to value enhancements of the
properties, above average Returns on Equity and profitability. KWG´s
portfolio comprises more than 6,800 units including units from BWAG´s
portfolio. KWG´s shares are listed in the Entry Standard of the Frankfurt
Stock Exchange.


KWG Kommunale Wohnen AG
Jan Hutterer
Head of IR/PR
Alstertor 9
20095 Hamburg
Tel.: +49/ 40/ 2263088-100
eMail: ir@kwg-ag.de

End of Corporate News

20.12.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language:    English                                                
Company:     KWG Kommunale Wohnen AG                                
             Alstertor 9                                            
             20095 Hamburg                                          
Phone:       040 22 63 088 100                                      
Fax:         040 22 63 088 200                                      
E-mail:      ir@kwg-ag.de                                           
Internet:    www.kwg-ag.de                                          
ISIN:        DE0005227342                                           
WKN:         522734                                                 
Listed:      Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,   
             München, Stuttgart; Open Market (Entry Standard) in    

End of News    DGAP News-Service  

197502 20.12.2012                                                      
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