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Deutsche Wohnen AG signs purchase agreement for the acquisition of companies of BauBeCon Group

DGAP-Ad-hoc: Deutsche Wohnen AG signs purchase agreement for the acquisition of companies of BauBeCon Group

Deutsche Wohnen AG / Key word(s): Acquisition
27.05.2012 22:49

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

Frankfurt am Main, May 27, 2012. Today, Deutsche Wohnen AG announced that they have entered into an agreement with Barclays Bank PLC regarding the acquisition of companies of the BauBeCon Group. The BauBeCon Group companies to be acquired comprise approximately 23,500 residential units.
The geographic focus of the portfolio lies on metropolitan areas with a share of approx. 82 % (in excess of 19,000 residential units); the share of units situated in the urban area of Hanover/Braunschweig/Magdeburg accounts for approx. 40 % and approx. 30% for the greater Berlin area, respectively.
The acquisition strengthens Deutsche Wohnen AG's presence in its existing core region of Greater Berlin by approximately 6,500 residential units, leading to improved economies of scale. At the same time, the acquisition will add a new metropolitan area to Deutsche Wohnen AG comprising of the cities of Hanover/Braunschweig/Magdeburg with approx. 9,000 residential units, the scope of which allows for efficient management.
Deutsche Wohnen AG will enlarge its existing residential portfolio from currently approximately 50,000 to a total of approximately 73,500 residential units through the acquisition, thus achieving the mid-term targeted size of 75,000 units. For Deutsche Wohnen AG and its shareholders, the acquisition of BauBeCon Group constitutes an attractive opportunity to further pursue its consistent value-creating growth strategy based on benefits from economies of scale and further improvement of the FFO profile.

The transaction is based on an enterprise value of EUR 1.235 billion for 100 % of the BauBeCon Group companies to be acquired. Deutsche Wohnen AG will finance the acquisition through a combination of equity and debt, whereby an LTV ratio of less than 60 % shall be maintained in the mid-term post completion of the acquisition.

As of March 2012, the total annualized net rent contracted of the BauBeCon Group portfolio amounts to approx. EUR 95 million. In the core regions, the average monthly net rent contracted is EUR 5.40 per sqm, whilst the vacancy rate amounts to 2.7 %.

The enterprise value implies a multiple (net rent contracted) of 13.0 x (total portfolio) and a price per sqm (lettable area) of EUR 814.
Subject to customary conditions precedent, the closing of the acquisition of the BauBeCon Group companies is expected to be completed in the coming months.

+49 (0)30 / 897 86 - 551

27.05.2012 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language:     English
Company:      Deutsche Wohnen AG
              Pfaffenwiese 300
              65929 Frankfurt
Phone:        +49 (0)30 89786-0
Fax:          +49 (0)30 89786-507
ISIN:         DE000A0HN5C6, DE0006283302
WKN:          A0HN5C, 628330
Indices:      MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart  
End of Announcement DGAP News-Service