DGAP-News: KWG Kommunale Wohnen AG: KWG Kommunale Wohnen AG signs largest acquisition in its history and secures rights to 77.3% of shares in Barmer Wohnungsbau AG
(firmenpresse) - DGAP-News: KWG Kommunale Wohnen AG / Key word(s): Mergers&Acquisitions
KWG Kommunale Wohnen AG: KWG Kommunale Wohnen AG signs largest
acquisition in its history and secures rights to 77.3% of shares in
Barmer Wohnungsbau AG
06.03.2012 / 07:53
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- Dominating control of company with a portfolio of 1,391 residential
units in KWG Kommunale Wohnen AG's target region of
North-Rhine-Westphalia.
- Positive Net Cold Rent contribution of approximately EUR 4.8 million,
expected FFO-increase of around EUR 1.1 million in current fiscal year.
- Positive cash contribution from dividend payments to KWG Kommunale
Wohnen AG expected already in 2012.
- Expected increase of NNNAV per share from the transaction by around EUR
1.00.
- Expected low LTV of around 20% according to IFRS standards on Barmer
Wohnungsbau AG level.
Hamburg, 06 March 2012 - KWG Kommunale Wohnen AG (KWG AG hereafter), the
German long-term oriented German property holding company, has secured
rights to 77.3% of the shares in Barmer Wohnungsbau AG. The transaction
represents the largest step in growth in the history of KWG AG. The parties
involved agreed to keep the purchase price confidential. A part of the
consideration will be paid in 1.5 million newly to be issued KWG shares
that are being valued at EUR 7.54 per share. The transaction has already
received the necessary approvals by the boards of each company.
Through the transaction KWG AG substantiates its strategy to profitably
leverage the operating platform it created over the past years and which it
has turned FFO-positive already on a stand-alone basis through significant
investments into its properties in the past.
Barmer Wohnungsbau AG owns 1,391 residential units with a total lettable
area of approximately 90,600 square meters within the city of Wuppertal.
The portfolio has been extensively refurbished over the past years. Annual
Net Cold Rent currently amounts to approximately EUR 4.8 million and
reflects a discount of around 20 % vs. market prices for comparable
apartments. The residential portfolio's vacancy rate amounts to less than 1
%.
Barmer Wohnungsbau AG as per today is sustainably profitable on a cash
basis. Consequently the transaction will be instantly accretive to the
cash-effective Group Result of KWG AG. Barmer Wohnungsbau AG is expected to
distribute a cash dividend for 2011 to KWG AG already in the current fiscal
year.
On the basis of its current stake in Barmer Wohnungsbau AG KWG AG expects
an increase of the FFO for the current fiscal year by approximately EUR 1.1
million and maintains its target to be able to pay its shareholders a
sustainable cash dividend from operating activities.
In addition to the above mentioned cash effects KWG AG sees
non-cash-effective potentials for appreciations in value resulting from a
change to IFRS reporting standards on Barmer Wohnungsbau AG level. KWG AG
expects to increase its NNNAV per share by approximately EUR 1.00 and
expects the NNNAV per share on a diluted basis to amount to around EUR
9.00.
Showing financial debt of around EUR 13.3 million KWG AG expects Barmer
Wohnungsbau AG's Balance Sheet to show an attractive LTV of around 20% only
according to IFRS standards.
With the signiningfor the majority in Barmer Wohnungsbau AG KWG AG plans
to initiate a period of further growth. KWG AG plans to capitalise on
already existing opportunities in the market and aims to improve its
profitability by further leveraging its already implemented operating
platform.
The total number of apartments within KWG-Group increases by the
transaction to 6,800. The floor space increases to 400,000 square meters.
By the transaction KWG AG increases its presence in the attractive and
dynamic metropolitan region of North-Rhine-Westphalia. In addition it
expects to raise significant synergy potentials from a joint management of
now 2,440 units in the region as compared to formerly 1,049 units within
the same area.
KWG's Management Board invites you to join a Conference Call for
journalists, analysts and investors to explain further details of the
acquisition and to discuss growth perspectives. The Conference Call will
take place today at 12.00 a.m. CET. To participate in the conference,
please contact Mrs. Bahar Kocatuerk, edicto GmbH, for the dial in details
at +49 (0)69 905 505 53 or bkocatuerk(at)edicto.com.
About KWG AG
KWG Kommunale Wohnen AG is a long-term oriented owner and operator of
German residential real estate units. The company acquires residential real
estate portfolios at attractive conditions in promising micro-locations of
metropolitan regions and German regional centres and sustainably increases
their value through an active real estate asset management. By
refurbishments to high energy efficiency standards incidental costs for
tenants are being lowered. KWG AG covers the complete value chain from
acquisitions to construction management and its own internal property
management. As a result vacancies are being reduced and income from net
cold rent is being increased. This leads to value enhancements of the
properties, above average Returns on Equity and profitability. KWG's
portfolio post the transaction amounts to 6,800 units. KWG's shares are
listed in the Entry Standard of the Frankfurt Stock Exchange.
Contact
KWG Kommunale Wohnen AG
Jan Hutterer, Head of Investor Relations
Alstertor 9
20095 Hamburg
Tel.: +49- 40- 2263088-100
eMail: ir(at)kwg-ag.de
www.kwg-ag.de
End of Corporate News
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06.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KWG Kommunale Wohnen AG
Alstertor 9
20095 Hamburg
Germany
Phone: 040 22 63 088 100
Fax: 040 22 63 088 200
E-mail: ir(at)kwg-ag.de
Internet: www.kwg-ag.de
ISIN: DE0005227342
WKN: 522734
Listed: Freiverkehr in Berlin, München, Stuttgart; Open Market
(Entry Standard) in Frankfurt
End of News DGAP News-Service
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159400 06.03.2012
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Datum: 06.03.2012 - 07:53 Uhr
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