Prime Office has sold the headquarters of publishing company Süddeutscher Verlag – the so called SZ-Tower – in Munich to an international investment consortium for €164.1 million.
The contract, which was notarized on 20 November 2013, provides for the closing of the transaction by the end of December 2013. The disposal significantly improves the equity ratio of Prime Office from 39.8% as at 30 September 2013 to almost 50% while at the same time sustainably reducing its leverage. The disposal marks a key milestone for the company in the financial year 2013. In the second half of 2013, Prime Office had announced the finalization of key contracts: one with Daimler AG for a lease in the property in Stuttgart/Möhringen, which is now fully rented, and one on the disposal of “BMW's design center” in Munich.
"With the sale of the "SZ-Tower" we meet a material criterion of the business combination agreement with OCM German Real Estate Holding AG and take a further scheduled step towards the merger. At the same time, we clearly reach our target of increasing the equity ratio of Prime Office above 45% and comply insofar with the legally specified REIT equity ratio by the end of 2013", says Alexander von Cramm, member of the executive board of Prime Office REIT-AG.
Source: Prime office