Corporate News

Godewind Immobilien AG acquires further office properties in Frankfurt and Hamburg worth approx. EUR 205 million

– The acquisition comprises two office complexes, one in Frankfurt am Main and one in Hamburg-Eppendorf, with a total rental area of around 74,500 square metres.

– Both properties boast considerable potential for value appreciation and already generate rental incomes of around EUR 9.4 million per annum with a vacancy rate of 21 percent.

– Ongoing negotiations on the acquisition of further properties are set to be completed within the next few months.

Frankfurt am Main, 11 December 2018 – Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a real estate company specialising in German commercial property, has agreed to acquire two further office properties. This ‘asset deal’ acquisition relates to two office complexes, one in Frankfurt am Main and one in Hamburg-Eppendorf, with a total rental area of 74,452 square metres and a total of 1,349 parking slots. The total purchase price amounts to around EUR 205 million or an average of EUR 2,753 per square meter.

Properties with a gross initial yield of 4.6 percent and potential for value appreciation
Corresponding to the investment strategy of Godewind, these latest acquisitions again comprise office complexes in attractive locations, with considerable potential for value appreciation. The vacancy rate for the property in Frankfurt amounts to around 35.7 percent and for the property in Hamburg around 10.6 percent. The two properties generate annualised rental incomes of around EUR 9.4 million. This equates to a gross initial yield of roughly 4.6 percent. The anchor tenants include various public service-companies as well as European service- and industrial- companies. The weighted average lease term (WALT) is for the Frankfurt property around 5.6 years and for the Hamburg property around 3.0 years. Godewind will significantly improve these KPIs based on proactive asset management. The potential for development is to be raised, among other things, by reducing vacancies, rent increases and lease renewals with anchor tenants. The actual average rents for the Frankfurt property of EUR 11.20 per square meter and for the Hamburg property of EUR 12.90 per square meter are below the current market rent. The planned vacancy reduction and the market rent adjustments are to be discontinued by 2021 at the latest. The real estate then generates around 30 percent higher rental income of more than EUR 12 million p.a.. The average “Funds from Operations” (FFO) before “overheads” would then amount to approximately EUR 8.5 million. Here, Godewind’s tax loss carry-forwards have a positive effect.

Financing mix opens further growth potential for Godewind
In combination with other already acquired properties the company is seeking for a financing structure with a ‘Net LTV’ of around 50 percent on attractive capital market terms in the near future. The closing of the transaction is expected at latest until end of April 2019.

Outlook: further acquisitions in the pipeline
After the already executed transactions totalling a gross purchasing volume of around EUR 560 million, Godewind plans further rapid portfolio expansion. With the planned financing measures the ongoing negotiations with further sellers are expected to be finalized within the next few months.
 

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. Including the latest acquisitions Godewind has an office portfolio of around EUR 560 million. 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 and such shares in the United States or in any other jurisdiction.