Hamburg-based Alstria Office REIT is to acquire a portfolio of 13 German properties for EUR 111 mln in the company's second transaction since converting to the German equivalent of a real estate investment trust in October. The price reflects a net initial yield of 6.9%.
Hamburg-based Alstria Office REIT is to acquire a portfolio of 13 German properties for EUR 111 mln in the company's second transaction since converting to the German equivalent of a real estate investment trust in October. The price reflects a net initial yield of 6.9%.
Alstria said the portfolio has a total lettable area of 74,500 m2 and is being acquired for EUR 1,500 per square metre. The assets will generate a rent of EUR 7.7 mln, or EUR 9 per square metre per month. The seller, Bilfinger Berger, will stay on as tenant of 66% of the space. Just over 20% is leased to a third party and the remaining 13.5% is vacant allowing 'additional upside potential through active management,' Alstria said.
The deal is being financed through an existing credit facility and will close during the course of 2008, subject to cartel clearance.
'This transaction demonstrates the ability of Alstria to offer attractive terms to German corporations willing to unlock the capital tight in their office real estate. Exit tax benefit has again allowed both parties to improve the economics demonstrating the unique competitive advantage of REITs,' said Olivier Elamine, Altria’s CEO. Alstria was advised by Freshfields Bruckhaus Deringer.
Alstria was founded in January 2006 to focus on acquiring, owning and managing office real estate in Germany. The company's portfolio comprises 70 properties with an aggregate lettable space of 770,000 m2 and is valued at EUR 1.6 bn.
A month after converting to a REIT, Alstria bought a 36,500 m2 office park in Essen in a sale-and-leaseback transaction for EUR 62 mln. The purchase price reflected a net initial yield of just over 6%.