alstria office REIT-AG the leading German office REIT, announces the acquisition of an office portfolio from Office First.
Portfolio perfectly matches alstria’s acquisition criteria Pursuant to a purchase agreement dated April 24, 2017, alstria office REIT-AG acquires an office property portfolio for a total consideration (all-in-cost) of EUR 168.5 m (EUR 1,590 per sqm, yield on cost of 5.9%).
The twelve properties, located in Hamburg, Düsseldorf and Berlin are generating a passing rent of around EUR 9.9 m per annum and have a weighted average unexpired lease term (WAULT) of 3.4 years.
The portfolio perfectly matches alstria’s acquisition criteria regarding its location, average property size and asset management requirements. The vacancy in the portfolio of 21.0% will allow alstria to further improve the cashflow profile going forward. Financing by available cash and bank debt The portfolio will be financed with EUR 108.5 m of existing cash and EUR 60.0 m of new debt which represents a LTV of around 36% in line with the Company’s mid-term deleveraging target. Acquisition increases alstria’s FFO by EUR 7.3 m p.a. The favorable fundamentals of the transaction are expected to increase alstria’s funds from operations (FFO) by approximately EUR 7.3 m on a full-year basis.
The closing of the transaction, which is subject to customary conditions precedents, is expected to take place towards mid-2017. “This transaction allows us to re-invest the proceeds of the disposals that were made last year”, says Olivier Elamine, CEO of alstria. In a tensed investment market in which we operate, this acquisition demonstrates the ability of the Company to continue sourcing and executing attractive opportunities”.
Source: alstria office REIT