NORATIS AG
DGAP-Ad-hoc: Noratis AG / Key word(s): Disposal/Real Estate Public disclosure of inside information in accordance with Article 17 MAR Noratis AG sells property portfolio in Dormagen Eschborn, 14 September 2017 - Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK, "Noratis") today announced that it has signed a notarised agreement for the sale of 221 apartments in Dortmagen to an institutional investor by way of a block sale. The sold portfolio also includes 151 garages and 56 parking spaces. The purchase price is in the low double-digit million euro range. Closing the transaction was the final important milestone required for Noratis to achieve its revenue and earnings targets in fiscal year 2017.
After the successful sale of the portfolio and the positive course of business during the year, Noratis will also issue a guidance for the current fiscal year with the publication of its half-year figures scheduled for the end of September 2017. Information and Explanation of the Issuer to this News: In autumn 2015, Noratis AG had acquired a package of properties in Dormagen comprising 755 apartments, 7 commercial units as well as 243 garages and 155 parking spaces. The primary challenge faced by Noratis was a large maintenance backlog and the resulting vacancy rate of around 30 percent. Within less than two years, Noratis has completely refurbished and let far more than 200 apartments so that the vacancy rate now is down to almost zero. Work on the properties included repairing concrete and renovating facades, and painting staircases and basements. Extensive repairs were also carried out and parts of the electrical and piping installations were replaced. These measures not only significantly enhanced the living quality in the renovated buildings but also gave a substantial boost to the streetscape of the Dormagen district of Horrem. Following two previously completed block sales, Noratis now has disposed of the largest portion of its holdings in Dormagen. The company still owns 88 apartments, which have been put on the market individually since May. About a quarter of the apartments have already been sold. Igor Christian Bugarski, CEO of Noratis, explains the sale: 'The property portfolio in Dormagen was the largest to date in the history of Noratis. I am delighted that due to the great dedication of our asset managers and engineers we were able to significantly exceed all of the targets we set ourselves when we bought the properties - both in terms of schedule and financials. The development of the district has benefited tenants, retailers, tradesmen and the city of Dormagen. We believe that our Dormagen project is further validation of our successful business policy, and our plan is to re-invest the cash inflow in attractive residential portfolios with potential for appreciation very soon.' Noratis AG (www.noratis.de), located in Eschborn near Frankfurt, is a dynamically growing portfolio developer of residential real estate. The company purchases properties with development potential across Germany, mostly employee dwellings and housing estates built from the 1950s to 1970s in cities with more than 10,000 inhabitants or on the outskirts of conurbations. After acquisition, Noratis significantly enhances the value of the properties and subsequently sells them in block sales or individually as condominiums. This strategy enables Noratis to conserve and offer affordable housing for tenants with medium and small incomes. Since 2014 alone, Noratis has successfully completed 15 projects comprising more than 1,500 residential units. The company generated revenues of EUR 44.6 million in fiscal year 2016 and has grown at an annual average of 63% since 2014. Investor relations contact:
edicto GmbH
14-Sep-2017 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | Noratis AG |
| Hauptstraße 129 | |
| 65760 Eschborn | |
| Germany | |
| Phone: | +49 (0) 69 / 170 77 68 20 |
| E-mail: | info@noratis.de |
| Internet: | www.noratis.de |
| ISIN: | DE000A2E4MK4 |
| WKN: | A2E4MK |
| Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; Open Market (Scale) in Frankfurt |
| End of Announcement | DGAP News Service |
609787 14-Sep-2017 CET/CEST
