05. December 2016

GxP German Properties successfully closes acquisition of office portfolio comprising eight properties

• Closing of the acquisition of office real estate portfolio in West German cities
• The initial rental yield stands at an attractive 8.7 percent
• Advanced talks about the purchase of further objects

Berlin, 5 December 2016 – GxP German Properties AG (ISIN: DE000A1YCNN8) has successfully concluded the acquisition announced on October 15, 2016 ("Closing").

The purchased portfolio comprises eight commercial properties with a lettable area of around 65,100 square meters and a value of around 89 million euros. The properties are in good condition and have a vacancy rate of around 15 percent. They thus offer further attractive value enhancement potential in the course of the active asset management of GxP German Properties. The initial rental yield stands at attractive 8.7 percent.

The majority of the acquired portfolio is located in the Metropolregion Frankfurt / Rhein-Main with approximately 40,300 square meters. The other properties are spread over Düsseldorf, Stuttgart, Mannheim and Hanover.

The transaction was financed both from own funds raised in the course of the recent capital increase, as well as through debt financing in cooperation with HSH Nordbank AG. The funds were borrowed for a period of five years. They have an annual interest rate of 2.3 per cent and will be amortized with 2.0 per cent annually.

"We are pleased with the successful completion of the portfolio acquisition. This is a good example of our efficient and fast project implementation – including large transactions. At the same time, we are looking optimistically into the future: We are currently in advanced talks about the purchase of additional properties." commented Johannes Meran, CEO of GxP German Properties.

GxP German Properties AG

With its headquarters in Berlin, GxP German Properties focuses on the Acquisition, Ownership and Management of office and retail properties in Germany. The investment strategy focuses on attractive commercial properties in the Core+/Value add segments in metropolitan regions and selected mid-sized cities in Germany. The company’s strategy is to leverage significant appreciation potential through proactive portfolio management whilst safeguarding sustainable rental revenues at the same time. To this end, it draws on both its many years of experience in the property market and its extensive network.

The company’s website can be accessed at http://www.gxpag.com.

Contact details:

GxP German Properties AG
Europa Center 19. OG
Tauentzienstr. 9
10789 Berlin, Germany

TEL.: +49 (0)30 886 267 40
FAX: +49 (0)30 886 267 411
E-MAIL: info@gxpag.com

Kirchhoff Consult AG
Herrengraben 1
20459 Hamburg, Germany

TEL.: +49 (0)40 609 186 65
FAX: +49 (0)40 609 186 60
E-MAIL: gxp@kirchhoff.de