- Attractive transaction conditions: Annual rental income of 3.8 million euro and gross initial yield of 13.9%

- Tenant in the fully leased property is a leading automobile manufacturer

- Positive annual FFO contribution of 3.4 million euro expected

Cologne, Stuttgart, July 7, 2015.

The tenant in the fully leased office property with a total lettable area of 21,411 square metres and an annual gross rental income of approximately 3.8 million euro is a leading German automobile manufacturer. The purchase price of 27.2 million euro produces an attractive gross initial yield of 13.9%, or just 7.2 times the annual gross rental income. The lease with unlimited term can be terminated within a notice period of 2 years.

With an attractive gross initial yield the property matches the acquisition criteria set by Deutsche Office, which aims at acquiring properties with short leases or vacancy in metropolitan areas in Germany to achieve value accretion through active asset management. The Stuttgart region - with the lowest vacancy rate (approx. 5%) in the most important office markets in Germany - offers Deutsche Office ideal conditions and excellent value-creation potential.

"Following successful portfolio optimization and selective exploitation of attractive sales opportunities with individual properties, we now begun with acquisitions and started with an attractive office property in Stuttgart," explains Jürgen Overath, Spokesman of the Executive Board of Deutsche Office.

Half of the purchase price of the Stuttgart/Vaihingen property is financed using uncommitted funds from the sales of other properties and the other half comes from bank debt.

Thanks to the favorable transaction- and financing conditions, an annual contribution to funds from operations (FFO) of 3.4 million euro is expected. The transaction will most likely be finalized in Q3 2015.

Contact for property related queries:

DO Deutsche Office AG
Jörg Kesting
Head of Asset Management
Email jkesting@deutsche-office.de
Telephone +49 (0)221 - 888 29 201

Contact for corporate queries:

DO Deutsche Office AG
Richard Berg
Head of Investor Relations & Corporate Communications
Email rberg@deutsche-office.de
Telephone +49 (0)221 - 888 29 160

About Deutsche Office

Deutsche Office is a leading, SDAX index listed office property company, focusing on German metropolitan regions and conurbations. As at 31 March 2015, its geographically diversified real estate portfolio currently contains 51 properties held as investment properties, with a total rental area of about 900,000 square metres and an attractive and broad tenant base. As at 31 March 2015, the properties had a market value of about EUR 1.8 billion. Deutsche Office's business model is based on the profit-oriented, active asset management of office properties in German metropolitan regions, underpinned by investment to increase and to maintain the value of the properties in the portfolio. The strategy includes the acquisition of properties with potential for appreciation as well as exploiting sales opportunities applied throughout the entire property cycle in order to capitalise the appreciation achieved and to invest in new properties.

Additional information on Deutsche Office is available online at:
deutsche-office.com

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