AD HOC

Ad-hoc-Notification according to Art. 17 MAR - published via DGAP on the 28th August 2017 at 20:51h

GxP German Properties continues its growth with office asset acquisition and fully sub-scribed cash capital increase; change in the supervisory board

• Acquisition of an office property in Berlin-Teltow with approx. 10,000 sqm of lettable area and a market value of € 18.2 million
• Accretion of NAV/share und FFO I/share
• Cash capital increase of more than EUR 3.6 million successfully placed
• The chairman of the supervisory board, Mr. Andreas Lewandowski, will resign from the supervisory board; Michael Wurzinger to be appointed by court as a new member of the supervisory board

Frankfurt, 28th August 2017 – GxP German Properties (ISIN: DE000A1YCNN8, WKN: A1YCNN) is back on its growth track and signed today a purchase agreement for the acquisition of an office property in Berlin-Teltow. The transfer of ownership is scheduled for 15 December 2017. The property has a lettable area of around 10,000 square meters, an average occupancy rate of 99 percent and a weighted average lease term (WAULT) of 4.2 years. The market value of the property is approx. € 18.2 million and generates rental income of approx. € 1.1 million per year. The purchasing yield of the property is at 6.8 percent. GxP expects an annual FFO contribution of approx. € 0.5 million from the property from 2018 onwards. The debt portion of the financing of € 11.5 million was locked in long term at an attractive interest rate of approx. 1.8 percent which is below GxP’s average interest rate of approx. 2.2 percent and a LTV of approx. 64 percent.

Through the current purchase GxP is expanding its market value of its real estate portfolio to approx. € 124 million and increases the annualized rental income of currently €7.5 million to € 8.6 million and the annualized FFO I from currently € 3.5 million to approx. € 4.0 million. With the completion of this announced acquisition, the management of the GxP expects an increase in the core metrics NAV/share and FFO/share. Updated guidance will be provided on August 31st, 2017 with the announcement of 1H 2017 financials.
Today the Management Board of GxP with the approval of the Supervisory Board resolved the equity financing of the acquisition. A total of 866,307 new no-par-value bearer shares with the exclusion of shareholders' subscription through a cash capital increase against cash contributions (this corresponds to around 10 percent of the existing capital stock) at fixed price of € 4.16 per share (post reverse stock split). This implies a 1.9% discount to the XETRA closing price of August 25, 2017. The new shares were fully subscribed by existing and new institutional investors. The reverse stock split with a ratio of 8:1 was approved by the Annual General Meeting on May 17, 2017 and was registered on August 23, 2017 with ex-date on August 30, 2017. The share capital of the company post reverse stock split increases from € 8,663,071.00 to € 9,529,378.00.

Change in the supervisory board

The Chairman of the Supervisory Board of GxP German Properties AG, Mr. Andreas Lewandowski, has today announced that he will resign from the Supervisory Board as of September 30, 2017. The company will initiate the necessary measures for the court appointment of a new member of the Supervisory Board and is proposing Michael Wurzinger as a new member of the Supervisory Board. Michael Wurzinger has over 25 years of experience in German-speaking and international real estate management. As part of the management board and COO of the listed real estate developer UBM Development AG, he is responsible for the Asset Management, Transaction, Marketing and Legal activities. After the departure of Mr. Andreas Lewandowski the current deputy chairman Dr. Sebastian Glock has agreed to serve as Chairman.

IR Contact

Axel Mühlhaus / Patrick Wang
edicto GmbH
Eschersheimer Landstr. 42-44
D-60322 Frankfurt
Tel.: +49 (0) 69/ 905505-52
Fax: +49 (0) 69/ 905505-77
E-Mail: gxp@edicto.de