PRESS & MEDIA
02. February 2017
GxP German Properties successfully completes property acquisition in Dresden and achieves successes in the asset management of the portfolio
- Closing of the acquisition of two office properties in Dresden
- New lettings of nearly 2,000 square meters for existing properties in Hanover, Mannheim and Dresden
- Annualized rental income rises by around 180 thousand euros
Berlin, February 2, 2017 – GxP German Properties (ISIN: DE000A1YCNN8, WKN: A1YCNN) has successfully completed the acquisition of a property in Dresden ("Closing"), consisting of two office buildings, which was announced in September 2016. This increases the value of the GxP portfolio to around 106 million euros and the total rentable area to about 79,700 square meters. At the same time, the company has further optimized its current portfolio through active asset management.
The two office buildings are located at a central location in the Saxon state capital Dresden and have a combined rental area of around 14,600 square meters. They have a total value of around 17.7 million euros and generate rental income of around 1.1 million euros per year. GxP expects an annual FFO contribution from the successful acquisition of 800 thousand euros.
The transaction was financed by a combination of equity and debt: The debt capital amounting to 10.5 million euros comes from Ostsächsische Sparkasse. The loan has a term until October 2021 and an attractive interest rate of 1.38 percent and an annual repayment rate of 2.50 percent. This reduces the average financing rate for the entire GxP portfolio to 2.17 percent.
Operational development of the portfolio
Within the first 8 weeks after the acquisition, new leases for about 2000 square meters have been signed for GxP's own real estate assets in the cities of Hanover, Mannheim and Dresden. As a result of these asset management successes, the annual rental income of the company increases by around 180 thousand euros.
For a 4,794-square-meter building in Hanover, 1,142 square meters were let over a period of 10 years to a new tenant.
In addition, a new tenant was found in Mannheim for an area of around 600 square meters in property with a total of about 6,430 square meters. The lease was concluded for 5 years.
In the new property in Dresden, GxP was able to successfully extend the lease with an existing tenant by almost 250 square metres at the time of the closing.
All new leases were concluded at or above the existing rates. Following the new leases, the vacancy rate for the overall portfolio is just over 15 percent. The positive FFO contribution of the new leases amounts to around 190 thousand euros and is above the rental income, as the vacancy costs are being reduced.
In addition to its own portfolio, GxP German Properties also manages properties for institutional investors in the course of its asset management. Here too, the company achieved further successes.
In the cities of Hanover, Berlin, Teltow, Erfurt and Frankfurt (Oder) new tenants were won for the properties or existing leases extended. Within the last four months, a total of 9,500 square meters were relet with an annualized lease of more than one million euros and an average contract term of five years.
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 www.gxpag.com
GxP German Properties AG
Europa Center 19. OG
10789 Berlin, Germany
TEL.: +49 (0)30 886 267 40
FAX: +49 (0)30 886 267 411
Kirchhoff Consult AG
20459 Hamburg, Germany
TEL.: +49 (0)40 609 186 65
FAX: +49 (0)40 609 186 60