DGAP-Ad hoc: GxP German Properties AG

Ad-hoc-Notification according to Art. 17 MAR
 
GxP German Properties acquires two additional office assets and resolves non-cash capital increase
 

• Acquisition of two office properties with approx. 17,200 square meters of lettable area and a market value of EUR 29.8 million
• Financing via the combination of a non-cash capital increase of around EUR 4.5 million and own funds
• Increased guidance for NAV per share from currently EUR 5.79 to at least EUR 6.05 per share and FFO I to EUR 4.7 million

 
Frankfurt, September 20, 2017 - GxP German Properties (ISIN: DE000A2E4L00, WKN: A2E4L0) is continuing its growth phase with the acquisition of two new office properties in Frankfurt and Hamm and resolves to finance part of the acquisitions through a capital increase in kind from authorised capital. The transaction remains subject to certain conditions. The transfer of ownership of both properties is planned for the end of September 2017. This increases the market value of GxP's portfolio to around EUR 164 million and the total lettable area to around 106,700 square meters.
 
The two office properties are located in the inner centres of the city Hamm near Dortmund and Frankfurt am Main and have together a lettable area of approx.  17,200 square meters. The total market value of the two assets is around EUR 29.8 million generating a rental income of approx. EUR 1.7 million per year. The average acquisition yield is 7.0 percent and GxP expects an annual FFO I contribution of approx. EUR 0.7 million from the successful acquisitions.

The average occupancy rate for the two office properties is around 81 percent; the weighted average lease term (WAULT) is 4.7 years with strong credit rating tenants. The property in Frankfurt offers strong letting potential due to its micro location.

As a contribution to the equity financing the Management Board and the Supervisory Board of GxP resolved today a capital increase in kind from authorised capital. A total of 1,054,449 new no-par-value bearer shares with the exclusion of subscription right are issued at a price of EUR 4.30 per share. The company's capital increases therefore from EUR 9,529,378.00 to EUR 10,583,827.00.

With its recently announced acquisitions of three office assets GxP has been able to increase the market value of its real estate portfolio to approx. EUR 164 million. The annualised rental income increases to a total of EUR 10.4 million, the annualised FFO I to approx. EUR 4.7 million, respectively. The weighted average lease term (WAULT) including the new assets increases to 3.9 years (previously 3.6 years) with a vacancy of 14.4 percent. The LTV for the entire GxP debt portfolio dropped for the first time below 60 percent to 59.2 percent. With the closing of the three acquisitions the management of GxP expects an increased NAV per share of at least EUR 6.05 for fiscal year end 2017.
IR Contact
Axel Mühlhaus / Patrick Wang
edicto GmbH
Eschersheimer Landstr. 42-44
D-60322 Frankfurt
Tel.: +49 (0) 69/ 905505-52
Fax: +49 (0) 69/ 905505-77
E-Mail: gxp@edicto.de