Press Release


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. 
 

The two office buildings in Gustav-Nachtigal-Str. 3+5 form an office campus with a combined lettable area of 26,000 square metres and are located in the city center of Wiesbaden (capital of Hesse). alstria acquired the building in 2006 in a sale-and-leaseback transaction with Bilfinger SE. The former tenant vacated the building in 2018, which allows alstria to substantially refurbish the asset. See the building on google maps.

The office building in Solmsstr. 27-37 comprises a lettable area of 33,900 square metres and is located in Frankfurt City West. alstria acquired the building in 2015 and will invest substantially into the energy efficiency of the building. See the building on google maps.

Contact IR/PR:                                    
Ralf Dibbern                          
Steinstrasse 7                                      
20095 Hamburg, Germany                  
+49 40 22 63 41-329                   
[email protected]

More information on:
www.alstria.com
www.beehive.work
www.twitter.com/alstria_REIT
www.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.

Copyright © 2020 alstria office REIT-AG, All rights reserved.

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