DGAP-News: HAMBORNER REIT AG acquires office property in Stuttgart and sells two further high-street retail properties

PRESS RELEASE

HAMBORNER REIT AG acquires office property in Stuttgart and sells two further high-street retail properties

- Acquisition of a 'manage-to-core' property with attractive appreciation potential

- Further reduction of city centre retail property portfolio share

- Ongoing reinvestment of sales proceeds

Duisburg, 22 July 2021 - HAMBORNER REIT AG today has signed the purchase agreement for an office property in Stuttgart.

The acquired property is a multi-tenant office building constructed in the 1990s at the established 'Wallgraben' office and business site in the Vaihingen district. The location offers outstanding infrastructure access, consistently low vacancy rates and a steady rise in demand for office space.

The office property has approximately 5,900 m² of flexible rental space and high quality of features, which is to be enhanced further by selective modernisation work inside and out. The renovations will be carried out in line with the company's sustainability strategy and include upgrading the façade and modernising the technical building facilities.

The property currently has an occupancy rate of around 93% with an average remaining lease term of approximately 2.4 years. Given the forthcoming letting requirements in the short to medium term, the property has substantial potential for appreciation. This potential is to be leveraged on the basis of a comprehensive re-letting concept in line with the 'manage-to-core' approach.

"The office property in Stuttgart is an excellent addition to our manage-to-core portfolio currently in composition. Given the dynamic development of the location and the building's existing quality, we are confident of the success of our re-letting activities and of sustainably increasing the value of this property," said Niclas Karoff, CEO of HAMBORNER REIT AG.

The gross initial yield on the investment is 5.1%. The parties to the transaction have agreed not to disclose any further details at this time. Payment of the purchase price and transfer of ownership of the property are provisionally scheduled for the third quarter of 2021.

At the same time as this acquisition, HAMBORNER has systematically continued the optimisation of its property portfolio and further reduced its share of high-street retail properties. This month, the company has signed contracts to sell two further two high street stores.

These are the city centre properties in Langenfeld and Offenburg, which were acquired in 2011 and currently contribute around €1.6 million to the company's annual rental income.

The total sale price is around €23.3 million, which is around 1% higher than the market value and around 18% higher than the residual carrying amount of the properties as at 31 December 2020. The properties are expected to be transferred to the buyers in the third quarter of 2021.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG is a public company listed in the SDAX that operates exclusively in the property sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income on the basis of a diversified portfolio of properties distributed throughout Germany with a total value of around €1.5 billion. The portfolio focuses on modern office properties at established locations as well as attractive local supply properties as large-scale retail assets, retail parks and DIY stores in major German cities and mid-sized centres.

HAMBORNER REIT AG is distinguished by its many years of experience on the property and capital market, its consistent and sustainably attractive dividend strategy and its lean and transparent corporate structure. The company is a registered real estate investment trust (REIT) and benefits from corporation and trade tax exemption at company level.

CONTACT

Christoph Heitmann

Head of Investor & Public Relations

Tel.: +49 (0)203 54405-32

Mail: [email protected]

Web: www.hamborner.de