Alstria successfully sells further real estate assets (DE)

Alstria office REIT-AG, an internally-managed Real Estate Investment Trust (REIT) which is solely focused on acquiring, owning and managing office real estate in Germany, reports that it has agreed on the disposal of a further three real estate assets.

The selected assets located in Hamburg are office buildings with a total lettable area of approximately 6,000 m². One of the assets is a multi-tenant asset located in the center of Hamburg, while the other two are single-tenant assets located outside the city center in residential areas. The buildings are let on an average remaining lease length of 3.5 years, compared to the alstria's average lease length of approximately 9 years.

The total sales prices for the assets of approximately €15.5 million reflect a premium of around 5% compared to year end numbers of 2008 and 6% to half year IFRS results of 2009. The assets were sold at an average yield on cost of around 5.8%.

The disposals follow alstria's overall strategy put in order to manage the overall balloon payment of its main facility which matures at the end of 2011. This strategy includes the renegotiation of the LTV covenants which occurred in the first quarter 2009, selected asset sales, and selected non recourse financing of assets as those completed in the first half of 2009.

"In an overall depressed investment market, these new sales in Hamburg allow alstria to claim more than 15% of the total office investment market so far this year", said Olivier Elamine CEO of alstria. "In a market where buyers are more selective than ever, this is a testimony of the high quality of our assets, and their attractiveness to the market".

Source: alstria

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