The first property adjoins the shopping center, Nordsee Passage, Wilhelmshaven, Lower- Saxony, which was acquired by DTR in November 2006 from DEGI (Deutsche Gesellschaft fur Immobilienfonds) GmbH.
The shopping center comprises 28,341 m² of retail space and a 601 space car park. Tenants include H & M, C & A, Kult and Promarkt. The total lettable area of the department store is 10,671 m² which is leased to Hertie GmbH on a lease expiring in 2020 at a rent of 587,891 per annum.
The second property is located within the shopping centre, Marler Stern, Marl, North Rhine- Westphalia. In June 2007, DTR acquired 19% of this shopping mall from Union Investment Real Estate AG and with this acquisition the Company will own 44%. The shopping centre
comprises 58,000 m² of retail space and a 1,800 space car park. Tenants include Wehmeyer, H & M, Deichmann and C & A. The total lettable area of the department store is 14,937 m² which is leased to Hertie GmbH on a lease expiring in 2020 at a rent of 972,085
per annum.
The blended net initial yield of the two new acquisitions is 6.97%. DTR is acquiring the two properties from Dawnay, Day Group which owns the Hertie chain of department stores. DTR believes that there is strategic advantage from acquiring these properties as they are adjacent to existing sites within the Company's portfolio. These acquisitions are related party transactions by virtue of the fact that Peter Klimt, a director of DTR, is one of the principals of Dawnay, Day Group. In the context of these acquisitions, the directors of DTR, excluding Mr Klimt, having consulted with its nominated adviser, Citigroup Global Markets U.K. Equity Limited, consider the terms of the transaction are fair and reasonable insofar as DTR's shareholders are concerned.
Ian Henderson, Chairman of Dawnay, Day Treveria, commented: "As these transactions demonstrate, we are continuing to expand our portfolio of high quality German retail properties. In addition, our portfolio has excellent scope for value enhancing opportunities through asset management, and we remain focused on creating maximum value for shareholders."
Source: Cardew Group
