Fair Value REIT-AG acquires four properties from subsidiaries for direct ownership (DE)

The Fair Value REIT-AG has acquired four of the group’s properties into direct ownership. As a result of the acquisition Fair Value has increased its weighted proportionate interest in the properties from 54% to 100%.
The acquisition comprises of a hotel property in Dresden, a manufacturing and office property in Langenfeld, an office and retail complex in Neubrandenburg and an office property in Potsdam. The sellers of the properties are subsidiaries of Fair Value REIT-AG.
The hotel property in Dresden has been acquired by Fair value REIT-AG with effect from June 30 2015. It is planned to close the acquisition of the properties in Langenfeld, Neubrandenburg and Potsdam as per July 31 2015. The occupancy rate of the properties currently amounts to 94% of total lettable area of approximately 33,545 m².
The contractual rents of the properties are currently €2.4 mln per year with a weighted average lease term of 7.2 years. The total purchase price of €26.5 mln is 7% below the reported market value as of December 31 2014. Around 90% of the total acquisition costs will be financed through net proceeds of the rights issue successfully carried out in May 2015. The subsidiaries will use the sales proceeds to repay bank loans.
Source: Fair Value REIT-AG 

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