- 1,200 fully modernised housing units to transfer into proprietary portfolio
- Annual rent revenues total 4.2 million euros
- Purchase price equals 11 times the net annual rent
Berlin, 03 May 2013 - ESTAVIS AG just completed the acquisition of 3,200 apartments in Berlin's Hohenschönhausen district at a total purchase price of approx. 110 million euros. Thereof, 2000 housing units in need of refurbishment were already resold to two institutional investors. 1200 fully modernised housing units will transfer into the proprietary portfolio of ESTAVIS. Reselling the other apartments enabled the company to acquire these units for 45.3 million euros. The annual rent revenues total approximately 4.2 million euros.
'The extra revenues generated by reselling the partially refurbished or un-refurbished housing units made it possible for us to acquire our comprehensively modernised portfolios at a price below the book value,' explained Jacopo Mingazzini, Member of the Executive Board of ESTAVIS AG, adding that the purchase marks another milestone for the company. 'Having a positive cash inflow in the form of rent revenues from the start will mean a substantial and stable contribution to the consolidated net income of ESTAVIS in the future,' Mingazzini went on to say. The currently low rent average of 5.00 euros per square metre on unexpired leases implies considerable potential for further appreciation in the years to come.
The apartments were sold by Kristensen Real Estate Berlin. Having negotiated the deal as early as September 2012, ESTAVIS completed the transaction by 30 April. 'The acquisition moves us a big step closer to our medium-term goal of expanding the portfolio to 10,000 apartments,' Mingazzini added.
ESTAVIS AG is a listed property company focusing on residential properties. Through its purchasing network, which extends throughout Germany, ESTAVIS AG identifies property portfolios with great value-added potential, and uses its management expertise to harness this potential efficiently. In addition to regular cash flow from the property portfolio acquired, ESTAVIS AG develops its performance from income from privatisation proceeds. ESTAVIS AG is headquartered in Berlin and is listed on the Prime Standard of the Frankfurt Stock Exchange (German Securities Code Number [WKN]: A0KFKB).
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