DGAP-News: HAMBORNER REIT AG / Key word(s): Real Estate/Acquisition
HAMBORNER REIT AG acquires office property in Mainz and sells additional high street retail properties
- Office property acquired as part of 'manage to core' approach
- Successful sale of additional retail properties in city centre locations
- Portfolio optimisation to continue in conjunction with rapid reinvestment of sale proceeds
Duisburg, 9 March 2021 - Last week, HAMBORNER REIT AG signed the purchase agreement for an office property in Mainz whose value potential will be realized as part of the "manage to core" approach.
The company expanded its investment profile when it revised its business strategy in the previous year. In addition to the expansion of the existing core portfolio, this now involves the acquisition of selected properties that offer attractive additional potential for value appreciation as a result of letting, modernisation or repositioning in the short to medium term.
The office property acquired in Mainz was constructed in the 1990s at the established 'Kisselberg' office location. It benefits from outstanding infrastructure connections and a location that is enjoying dynamic growth and that is already home to the headquarters of numerous high-profile companies as well as major education and research institutions (including Johannes Gutenberg University of Mainz, the Max Planck Institute and the vaccine manufacturer BioNTech).
The property is currently fully let, with a remaining lease term of around three years. After this, HAMBORNER intends to extensively modernise the building both inside and out as part of its re-letting activities and in line with its sustainability strategy. This includes redesigning the facade to be energy-efficient as well as the renewal of the air conditioning system.
As a city, Mainz is an attractive office location that has seen consistently rising demand for space for some years now. Thanks to its expertise, HAMBORNER is confident that it can attract future office tenants to the location for the long term by realising an innovative concept for subsequent use at an early stage.
The parties to the transaction have agreed not to disclose any further details for the time being. Payment of the purchase price and transfer of ownership of the property are provisionally scheduled for the second quarter of 2021.
At the same time as this acquisition, HAMBORNER has systematically pressed ahead with the optimisation of its real estate portfolio by successfully selling additional properties.
Having already disposed of eleven properties that were no longer consistent with its strategy in the second half of 2020, the company has now signed contracts to sell a further two commercial buildings in Bad Homburg. This relates to the city centre properties in Louisenstr. 53-57 and 66, which were acquired in 2011 and 2014 respectively and which currently contribute around €1.4 million to the company's annual rental income.
The total sale price is around €27.1 million, which is around 8% higher than the market value and around 37% higher than the residual carrying amount of the two properties as at 31 December 2020. The properties are expected to be transferred to their buyer in the second quarter of 2021.
ABOUT HAMBORNER REIT AG
HAMBORNER REIT AG is a public company listed in the SDAX that operates exclusively in the property sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income on the basis of a diversified portfolio of properties distributed throughout Germany with a total value of around €1.6 billion. The portfolio focuses on modern office properties at established locations as well as local supply properties as large-scale retail assets, retail parks, DIY stores and attractive high street properties in major German cities and mid-sized centres.
HAMBORNER REIT AG is distinguished by its many years of experience on the property and capital market, its consistent and sustainable dividend policy and its lean and transparent corporate structure. The company is a registered real estate investment trust (REIT) and benefits from corporation and trade tax exemption at company level.
|Company:||HAMBORNER REIT AG|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1174030|
|End of News||DGAP News Service|