DO DEUTSCHE OFFICE AG - Sale of property with 7.1 % book profit versus IFRS book value
- Exit yield of c6 %
Cologne, Bonn, 6 August 2015.
The modern office building is located at the Bonner roundabout ("Bonner Verteiler") and has a total lettable area of 10,382 sqm. The selling price of EUR 24 million was 7.1 % above IFRS book value as at 31 December 2014. Based on the annual actual rent the gross yield is c6%. Weighted average lease term ("WALT") of the property which has been stabilized within Deutsche Office's active asset management approach stands at 6.6 years.
"The sale of the office property in Bonn is in line with our strategy to achieve sustainable proceeds from property sales along the real estate cycle to free up funds - as seen with our latest acquisition in Stuttgart - and take advantage of attractive buying opportunities with value-add potential", says Jörg Kesting, Head of Asset Management of Deutsche Office.
Benefits and obligations are expected to be transferred to the buyer in the course of Q4/2015.
About Deutsche Office
Deutsche Office is a leading, SDAX index listed office property company, focusing on German metropolitan regions and conurbations. As at 31 March 2015, its geographically diversified real estate portfolio currently contains 51 properties held as investment properties, with a total rental area of about 900,000 square metres and an attractive and broad tenant base. As at 31 March 2015, the properties had a market value of about EUR 1.8 billion. Deutsche Office's business model is based on the profit-oriented, active asset management of office properties in German metropolitan regions, underpinned by investment to increase and to maintain the value of the properties in the portfolio. The strategy includes the acquisition of properties with potential for appreciation as well as exploiting sales opportunities applied throughout the entire property cycle in order to capitalise the appreciation achieved and to invest in new properties.
Additional information on Deutsche Office is available online at: http://deutsche-office.com
Contact for property related queries:
DO Deutsche Office AG
Jörg Kesting
Head of Asset Management
Email jkesting@deutsche-office.de
Telephone +49 (0)221 - 888 29 201
Contact for corporate queries:
DO Deutsche Office AG
Richard Berg
Head of Investor Relations & Corporate Communications
Email rberg@deutsche-office.de
Telephone +49 (0)221 - 888 29 160
2015-08-06 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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