ADO Properties S.A.: Disposal of 5,000 residential assets above book value
September 18, 2020 at 06:43 am
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DGAP-News: ADO Properties S.A.
/ Key word(s): Disposal/Real Estate
ADO Properties S.A.: Disposal of 5,000 residential assets above book value
18.09.2020 / 07:43
The issuer is solely responsible for the content of this announcement.
ADO Properties S.A.: Disposal of 5,000 residential assets above book value
Successful disposal of c.5,000 units at premium to book value
Following the transaction, ADLER's vacancy rate will reduce by 0.4% and average rent will increase by 2 cents/sqm/month
Transaction is the next step in ADLER's strategy to streamline its portfolio and strengthen its balance sheet in line with ongoing deleveraging commitments
Net LTV to reduce by 130 bps
Closing is expected by the end of the year
Berlin, 18 September 2020 - Adler Real Estate AG (ADLER), c. 95% subsidiary of ADO Properties S.A. (ADO), today entered into a binding sale and purchase agreement with a major international real estate investor, to dispose of 5,064 residential and commercial units at a premium to book value as of H1 2020, further demonstrating the resilience of the German residential real estate market at a time of heightened macroeconomic uncertainty. The properties are primarily located in Lower Saxony, North Rhine Westphalia and Rhineland-Palatinate. The units generate net rental income of EUR 18.6m pa and have a 12% vacancy rate with an average rent of 5.46 EUR/sqm/month.
The transaction is a natural next step in ADO's strategy to streamline its portfolio. The assets are located in 36 cities which are not included in the top 13 cities and represent c.18% of its portfolio outside of the top 13 locations. As such, ADO will be exiting 34 of cities through the transaction as it looks to refocus its portfolio. The sale will have a positive impact on all portfolio KPIs, with vacancy reducing by 0.4% and average rent increasing by 2 cents/sqm/month based on ADLER's H1 2020 results.
Net proceeds of c.EUR 237m, after debt repayment, taxes and fees, will be used to further strengthen the balance sheet, in line with ADO's ongoing deleveraging commitments. Following the transaction, net LTV will reduce by c. 130 bps to 51.2% based on ADO's H1 2020 figures. Management remains committed to reduce leverage to below 50%. The transaction is expected to close by the end of 2020.
Contact
Investor Relations:
T +352 278 456 710
F +352 203 015 00
E ir@ado.properties
Media Relations:
Finsbury
Gordon Simpson
E Gordon.Simpson@finsbury.com
Ed Simpkins
E Edward.Simpkins@finsbury.com
T +44 207 251 3801
Hering Schuppener
Christian Falkowski
E cfalkowski@heringschuppener.com
T +49 69 92 18 74 64
18.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Language:
English
Company:
ADO Properties S.A.
1B Heienhaff
1736 Senningerberg
Luxemburg
Phone:
+352 278 456 710
Fax:
+352 203 015 00
E-mail:
ir@ado.properties
Internet:
www.ado.properties
ISIN:
LU1250154413
WKN:
A14U78
Indices:
SDAX, FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, Luxembourg Stock Exchange, SIX
Adler Group SA, formerly known as ADO Properties, is a Luxembourg-based real estate company. The Company operates in Germany, in the residential real estate field with approximately 70,000 residential units, and a development pipeline of approximately 10,000 new flats in Germany. The Company focuses on asset and portfolio management, property and facility management and developing residential properties throughout Germany. The Company operates through two business segments: Residential property management and development. Residential property management offers renting and managing residential properties, the management of tenancy agreements and marketing of residential units with the focus on optimization of rental income. The development side of the business splits into build-to-sell projects and build-to-hold projects.