Alstria office REIT-AG: 60,000 sqm leasing success in alstria's development portfolio secures EUR 14.8 million of annual rental income on a long-term basis
January 06, 2020 at 11:45 am EST
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alstria office REIT-AG: 60,000 sqm leasing success in alstria's development portfolio secures EUR 14.8 million of annual rental income on a long-term basis
06.01.2020 / 17:40
The issuer is solely responsible for the content of this announcement.
Press Release
60,000 sqm leasing success in alstria's development portfolio secures EUR 14.8 million of annual rental income on a long-term basis
Hamburg, January 6, 2020 - alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1) announces the signature of two new leases in Frankfurt and Wiesbaden. Both buildings belong to alstria's development portfolio.
alstria has signed two new substantial leases for its development assets in Gustav-Nachtigal-Str. 3+5 (Wiesbaden) and Solmsstr. 27-37 (Frankfurt). With the new leases, both buildings are fully let to public tenants on a long-term basis. The combined annual rental income for the 60,000 square metres of lettable space amounts to EUR 14.8 million, which represents a rental growth of 52% compared to the prior rent. The combined capex of the modernisation measures, which will materially improve the quality of the assets, will amount to EUR 107 million and will result in an estimated yield on cost of 7.25%.
The lease for the asset in Solmsstr. 27-37 (Frankfurt) has a maturity of 20 years and will start in the second half of 2021, whereby the lease length for the asset Gustav-Nachtigal-Str. 3+5 (Wiesbaden) is 15 years and will start in the second half of 2022.
"The signature of these two leases allows us to get into our new development cycle with a pre-let quota of 61%", said Olivier Elamine, CEO of alstria office REIT-AG. "These two leases further highlight the uniqueness of the opportunities that exist within alstria's portfolio, and the ability of the company to convert these opportunities into incremental revenues and NAV growth."
alstria was advised by Angermann Real Estate Advisory and legally by Hogan Lovells on the closing of the lease agreement in Frankfurt. Colliers International Deutschland GmbH advised on the lease agreement in Wiesbaden, legal advice was provided by Beiten Burkhardt.
Further information: www.alstria.com www.beehive.work twitter.com/alstria_REIT linkedin.com/company/alstria-office-reit-ag
About alstria:
alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006 and was converted into the first German REIT in October 2007. Its headquarters are in Hamburg. The combination of alstria and Deutsche Office creates the leading listed German office real estate company with a combined portfolio of 117 office buildings comprising 1.5 million sqm of lettable space and representing a total portfolio value of approximately EUR 4.2 billion. The alstria office REIT-AG strategy is based on active asset and portfolio management as well as on establishing and maintaining good relationships with key customers and decision makers. alstria focuses on long-term real estate value creation.
Disclaimer:
This release constitutes neither an offer to sell nor a solicitation of an offer to buy any shares. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences. alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
06.01.2020 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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alstria office REIT AG is a Germany-based real estate investment trust (REIT) that focuses on acquiring, owning and managing office real estate in Germany. The Companyâs real estate operations cover asset management, property and technical management, as well as the office planning. It owns a portfolio of approximately 120 properties across Germany in Hamburg, Berlin, Bonn, Detmold, Dortmund, Dresden, Dusseldorf, Erfurt, Essen, Frankfurt, Halle, Hannover, Jena, Koln, Leipzig, Magdeburg, Mannheim, Munich, Neuss, Nurnberg, Potsdam, Stuttgart, Wiesbaden, Wuppertal, Wurzburg and Zwickau.
alstria office REIT-AG: 60,000 sqm leasing success in alstria's development portfolio secures EUR 14.8 million of annual rental income on a long-term basis
ALSTRIA OFFICE REIT-AG 
