DGAP-News: Godewind Immobilien AG acquires first commercial properties worth approx. EUR 73.5 million

Godewind Immobilien AG acquires first commercial properties worth approx. EUR 73.5 million

• The acquisition comprises two office complexes, one in Frankfurt and one in Dusseldorf, with a total rental area of around 29,300 square metres.
• Both properties boast considerable potential for value appreciation and already generate rental incomes of around EUR 4.2 million per annum.
• Negotiations on the acquisition of further properties are set to be completed in Q4.
   

Frankfurt am Main, 16 October 2018 - Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a real estate company specialising in German commercial property, has agreed to acquire its first commercial properties. This 'asset deal' acquisition relates to two office complexes, one in Frankfurt and one near Dusseldorf-Airport, with a total rental area of around 29,300 square metres. The total purchase price amounts to around EUR 73.5 million or an average of EUR 2,505 per square meter. The closing of the transaction is expected by the end of this year.

Properties with a gross initial yield of 5.7 percent and potential for value appreciation
Corresponding to the investment strategy of Godewind, the properties are office complexes in attractive locations, with considerable potential for value appreciation. The vacancy rate for the property in Dusseldorf amounts to around 1 percent and for the property in Frankfurt around 9 percent. The two properties generate annualised rental incomes of around EUR 4.2 million. This equates to a gross initial yield of roughly 5.7 percent. The anchor tenants include various European service and industrial companies. The weighted average lease term (WALT) is around 3 years. The annualised funds from operations (FFO) before overheads come in at more than EUR 2.8 million. This translates to an initial FFO margin starting at around 8 percent before overheads. In addition, Godewind's tax loss carry-forwards will have a positive effect in the future. Godewind will significantly improve these KPIs on the basis of proactive asset management, with development potential harnessed by means of vacancy rate reduction, rent increases and the renewal of rental agreements with anchor tenants. The current average rents for the Frankfurt property of EUR 10.50 per square meter and for the Dusseldorf property of EUR 13.00 per square meter are well below the market rent. Therefore, it is planned to increase the annualized rental income for full occupancy by up to 14 percent to EUR 4.7 million.

Financing mix and structural expansion open up further growth potential for Godewind
The acquisition will initially be funded from equity capital raised as part of the IPO in April. The company is seeking a financing structure with a 'Net LTV' of a maximum of 50 percent on current capital market terms in the near future.

Progress has also been made in terms of further expanding the corporate structure. For example, Godewind has brought further distinguished property experts on board. Jan Ohligs, who was previously responsible for the property business in Germany, Austria and Switzerland at American investment bank Jefferies, has been appointed Head of M&A at Godewind. The new Head of Asset Management is Marcus Sälinger, who was previously in charge of asset management at Principal Real Estate Europe. These appointments will help drive forward ongoing growth at Godewind.

Outlook: further acquisitions in the pipeline
Following completion of the transaction, Godewind plans rapid portfolio expansion - and negotiations are already under way with further sellers in this regard.

The new acquisitions will be funded using the planned financing measures and the company's remaining cash in hand.

Stavros Efremidis, CEO of Godewind Immobilien AG: 'Following our IPO, we have now managed to acquire the first attractive office complexes, which boast significant potential for value appreciation. We will maximise this potential by means of our proactive portfolio management. This most recent acquisition will herald further such transactions in the near future, our aim being to significantly increase our portfolio volume by the end of the year.'

About Godewind Immobilien AG
Based in Frankfurt, Godewind Immobilien AG is a real estate company specialising in German mixed-use portfolios. The company focuses on building up an attractive portfolio of commercial properties, with an emphasis on office buildings. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by the regular realisation of added value potential. In the medium term, the aim is to build a commercial real estate portfolio of around three billion euros with the help of the company's wide-ranging network and by means of value-added acquisitions.

Based on its internal portfolio and asset management, Godewind Immobilien AG will manage commercial properties cost-effectively, enter into long-term tenancy agreements and thus increase its enterprise value. The company has tax loss carry-forwards for corporation and trade tax, as well as a tax-free capital reserve. The shares in Godewind Immobilien AG are traded in the Prime Standard segment on the Frankfurt Stock Exchange (FWB).

For more information, please visit http://www.godewind-ag.com

Contact details

Investor Relations contact
Gunnar Janssen
Godewind Immobilien AG
Tel.: +49 (0)69 257 375 190
Email: g.janssen@godewind-ag.com

Press contact
Jan Hutterer
Kirchhoff Consult AG
Tel.: +49 (0)40 6091 8665
Email: godewind-ag@kirchhoff.de

Disclaimer:

These materials are for informational purposes only and are not intended to constitute, and should not be construed as, an offer to sell or subscribe for, or the announcement of a forthcoming offer to sell or subscribe for, or a solicitation of any offer to buy or subscribe for, or the announcement of a forthcoming solicitation of any offer to buy or subscribe for, ordinary shares in the share capital of Godewind Immobilien AG (the "Company") and such shares (the "Shares") in the United States or in any other jurisdiction.

This publication serves as a notification. The shares offered have already been sold.