PTA-News: PATRIZIA Immobilien AG: PATRIZIA sells Süddeutsche Wohnen
New owner for 19,800 apartments

6/14/2015, 10:25 PM (Source: pressetext)
Augsburg (pta004/14.06.2015/22:25) - Key Points: - Purchase price of approximately EUR 1.9 billion - EUR 89 million invested in the portfolio since its acquisition - Social charter will be continued - Significant rise in the forecast

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Augsburg (pta004/14.06.2015/22:25) - Key Points:
- Purchase price of approximately EUR 1.9 billion
- EUR 89 million invested in the portfolio since its acquisition
- Social charter will be continued
- Significant rise in the forecast

Augsburg, 14 June 2015. PATRIZIA Immobilien AG has sold Süddeutsche Wohnen Group (SÜDEWO) to Deutsche Annington. The purchase price for SÜDEWO, which comprises a portfolio of 19,800 apartments, is approximately EUR 1,9 billion. PATRIZIA had acquired SÜDEWO (then LBBW Immobilien GmbH) from LBBW in February 2012.

PATRIZIA recently received an unsolicited offer for the acquisition of SÜDEWO. In its role as investment manager, PATRIZIA analysed and subsequently presented this offer to the investor consortium for consideration. In addition to the normal commercial due diligence, PATRIZIA also undertook a "social due diligence" to ensure specific social requirements are clearly defined and upheld by the potential new owner.

The investor consortium is of the view that only a professional and experienced residential portfolio company with a sustainable approach to property management and appropriate regional ties could be considered as a potential new owner. In addition, any new owner must display a strong willingness to invest in the portfolio beyond the expected norm. PATRIZIA has also ensured that the existing social charter will be explicitly adhered to; compliance with this charter is a fixed component of the purchase agreement. In this context, the investor consortium is confident the new owner meets these requirements.

Since the acquisition of SÜDEWO (then LBBW Immobilien GmbH) by the investor consortium headed by PATRIZIA, all tenant protection regulations have been successfully implemented and the agreed social charter has been complied with in full. Furthermore, a total of EUR 89 million has been invested by the consortium in the residential portfolio. The social charter will continue to be complied with as stipulated in the purchase agreement.

Rise in earnings forecast for 2015 and 2016 to a total of at least EUR 200 Million

As a result of the sale of SÜDEWO and the acquisition of the German-Swedish portfolio with around 14,000 apartments, as well as other recent transactions, PATRIZIA has significantly increased its previously published earnings forecast. The operating profit was previously expected to grow by around 10% in the current financial year from a level of EUR 50.2 million. In view of the latest transactions, the Managing Board of PATRIZIA now anticipates cumulative operating profit totalling at least EUR 200 million for the 2015 and 2016 financial years.

"The most recent transactions show that PATRIZIA successfully covers the entire investment cycle. With our real estate expertise, we create valuable investments for our investors and we do so in different types of use and risk classes throughout Europe," says Wolfgang Egger, CEO of PATRIZIA Immobilien AG. "The decisions taken in recent years to retain profits instead of distributing them have proven to be spot-on. This gives us the necessary flexibility to win even high-volume projects quickly. The recent transactions once again demonstrate that we use our liquidity in a way that creates value without having to ask our shareholders for fresh funds. Our business model is taking effect. The investments we are making today form the basis for profitable growth tomorrow. As such, we are just at the start of our journey."


emitter: PATRIZIA Immobilien AG
address: Fuggerstraße 26, 86150 Augsburg
country: Germany
contact person: PATRIZIA Investor Relations
phone: +49 821 50910-369

ISIN(s): DE000PAT1AG3 (share)
stock exchanges: regulated market in Frankfurt; free market in Stuttgart, free market in Munich, free market in Hamburg, free market in Dusseldorf, free market in Hannover; open market in Berlin

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