DGAP-News: KWG Kommunale Wohnen AG: KWG enhances value of its properties in Celle and Gelsenkirchen through modernisation
(firmenpresse) - KWG Kommunale Wohnen AG / Miscellaneous
19.04.2010 07:53
Dissemination of a Corporate News, transmitted by
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- Additional rental income of more than 500,000 euros a year from 2011
thanks to the modernisation work
- Financing of 6.7 million euros already secured
- Improved insulation and upgrade of the buildings
- Return on investment over 15%
Hamburg - 19th April 2010 - KWG Kommunale Wohnen AG will be enhancing the
value of its properties in Celle and Gelsenkirchen through an extensive
modernisation project. A total of 6.7 million euros will be invested in the
315 apartments - in insulation, new heating, interior redecoration and
other measures. KWG expects these measures to yield a positive effect on
the net cash flow, which should already be in excess of 1.1 million euros
in 2011: the modernisation work will increase this figure by almost 500,000
euros.
The positive effect on rental income will result from the increased
attractiveness of the properties, which should, among other things, enable
a significant reduction in vacancy rates. At present, over 50% of the 172
apartments in Celle are standing empty, while vacancies amount to some 20%
of the 143 units in Gelsenkirchen; these figures are in line with plan. KWG
aims to reduce vacancies to a normal market level by means of the work. The
tenants will be able to cut their energy costs by up to half as a result of
the modernisation.
The planned measures will be financed by a mix of own capital and borrowed
funds. KWG has managed to obtain fixed interest for 10 years at an average
of 2.58% for the money borrowed from the KfW bank. The measures overall
yield a return on equity (ROE) of some 15%.
After a successful 2009, for which provisional figures show an increase in
net profit from 0.8 to 3.3 million euros, the company expects the positive
earnings trend to continue in 2010, the investment programme
notwithstanding.
Kontakt:
KWG Kommunale Wohnen AG
Jutta Rehfeld
Alstertor 9
20095 Hamburg
Tel.: 040/2263088-140
eMail: rehfeld(at)kwg-ag.de
edicto GmbH
Axel Mühlhaus
Zeißelstraße 19
60318 Frankfurt a. M.
Tel.: 069/ 9055055-0
eMail: amuehlhaus(at)edicto.de
19.04.2010 07:53 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: KWG Kommunale Wohnen AG
Alstertor 9
20095 Hamburg
Deutschland
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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Datum: 19.04.2010 - 07:53 Uhr
Sprache: Deutsch
News-ID 19230
Anzahl Zeichen: 0
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Kategorie:
Business News
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