Corporate News

Godewind Immobilien AG acquires Frankfurt Airport Center for some EUR 168 million to continue rapidly its path of growth

• Purchase of office property Frankfurt Airport Center with rental area of around 48,140 square metres
• Contractually agreed rental income of currently around EUR 10.14 million per year
• Vacancy rate of around 18 percent offers considerable potential for added value
• Negotiations on the acquisition of further properties are set to be completed in Q4

Frankfurt am Main, 13 November 2018 – As already disclosed in an ad-hoc release on 31 October Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a real estate company specialising in German commercial properties, has acquired another attractive office building in the context of an off-market-transaction.

Just a few days after its first acquisitions, the company purchased approximately 89.9 percent of the office building Frankfurt Airport Center (FAC) at Frankfurt Airport within the framework of a share deal. The net purchase price for the entire object ammounts to EUR 168 million or EUR 3,490 per square meter. The closing of the transaction is expected by the end of this year.

Prominent asset with attractive performance indicators and excellent location
The FAC has excellent transport connections: The leasehold property is situated right at Terminal 1 of Frankfurt Airport. The property has direct connetions to the intercity rail network. Terminal 2 can be reached within a view minutes walk. The building complex comprises a total lettable area of some 48,140 square metres. In addition, the FAC has 182 car parking spaces. Tenants include various airlines, as well as a number of service companies.

The contractually agreed net rental income of the property ammounts to EUR 10.14 million – a gross initial yield of 5.5 per cent (after deduction of ground rent). The average remaining lease term (WALT) is 6.2 years.

FAC offers considerable growth potential and attractive existing funding
A vacancy rate of currently around 18 percent means the property has significant value potential and therefore is an excellent fit for Godewind’s corporate strategy. With the execution of a complex modernisation concept and a repositioning of the FAC Godewind intends to reduce the vacancy rate entirely and to realise the potential of the estate. The current contractually agreed rents amount to an average of EUR 20.90 per square meter and are below market average, revealing considerable upside potential.

With the planned full occupancy by 2021 the Funds from Operations (FFO) prior “overheads” will increase to around EUR 6.5 million on basis of the current market rents – a FFO yield on the equity after refinancing of around 8.5 percent. In this context Godewind will profit from the realisable tax loss carryforwards.

Equity of around EUR 76.3 million is being used to finance the transaction. Existing financing of EUR 88 million, which also includes a reserve of EUR 27 million for capital expenditure and fittings, is to be rolled over.

Outlook: further acquisitions in the pipeline
Following completion of the transaction, Godewind plans a 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. Following the completion of the current transaction expected by the end of 2018, Godewind has a real estate portfolio of approximately EUR 270 million.

Stavros Efremidis, CEO of Godewind Immobilien AG, said: “Our portfolio expansion is peeking up speed. Following shortly after our first acquisition we have now purchased another attractive commercial property. The Frankfurt Airport Center is an impressive office complex in an excellent location and offers significant value added potential, which we intend to realise quickly, making it a perfect fit for our commercial strategy.”

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 https://www.covivio-office-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.