ADLER Real Estate : to enter into a joint venture with Benson Elliot to dispose of ADLER's non-core portfolio

ADLER Real Estate AG to enter into a joint venture with Benson Elliot to dispose of ADLER's non-core portfolio

- ADLER to transfer non-core units into a joint venture with Benson Elliot Capital Management

- The units transferred will have a gross asset value of circa EUR 115 m representing a 5 percent premium to book value

- Benson Elliot Capital Management to acquire a majority stake in the joint venture

- ADLER to maintain asset, property and facility management until assets are sold as well as retain upside potential from future disposals

Berlin, April 18, 2018: Based on a letter of intent, ADLER Real Estate AG will establish a joint venture with Benson Elliot Capital Management LLP with the sole purpose of disposing of its non-core-units.

Subject to legally binding documentation, ADLER intends to transfer the non-core units ear-marked for disposal with a gross asset value of circa EUR 115 million, representing a circa 5 percent premium on the current book value, into a joint venture.

It is intended that Benson Elliot will acquire a majority stake in the joint venture, while ADLER will retain a substantial minority participation. ADLER shall maintain the roles of asset, property and facility managers until the assets are ultimately sold to third parties. Furthermore, ADLER is expected to participate in any upside deriving from future disposals undertaken by the joint venture.

The parties expect to enter into a definitive agreement within the upcoming weeks upon completion of a customary due diligence process and subject to final documentation.

"We are particularly pleased with such a collaboration" said Tomas de Vargas Machuca, Co-CEO of ADLER Real Estate AG, "as it would allow us to divest our non-core portfolio at a premium and retain upside potential with the planned disposal from the joint venture. Benson Elliot has a strong track record in this field and is an internationally renowned private equity firm with whom we have worked very well in the past. Furthermore, part of the proceeds will be used for net debt repayment and thus continue to expedite our LTV reduction in order to improve our current rating and achieve Investment Grade as soon as possible."

For enquiries, please contact:
Dr Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Telephone: +49 (30) 2000 914 29
r.grass@adler-ag.com