Adler Real Estate : Real Estate AG successfully placed a EUR 800 million bond to institutional investors across Europe

ADLER Real Estate AG successfully placed a EUR 800 million bond to institutional investors across Europe

- Two tranches with 4 and 6 years maturity

- Coupon 1.500 percent and 2.125 percent respectively - Average of 1.734 percent

- Issue substantially oversubscribed by more than 2.5 times

- BB+ bond rating announced by Standard & Poor's

- FFO I contribution of c. EUR 11 million

- WACD reduction from 3.5 to 2.7 percent

- More than EUR 1 bn of unencumbered assets

Berlin, 29 November 2017 - ADER Real Estate AG today successfully placed a EUR 800 million senior unsecured bond to institutional investors across Europe. Following the closing of the bookbuilding, the final terms of the senior unsecured notes were fixed. The notes will be issued in two tranches. The first tranche with a coupon of 1.500 percent p.a. and a volume of EUR 500 million matures in Dec 2021 and was issued at 99.520 percent. The second tranche with a volume of EUR 300 million and a coupon of 2.125 percent p.a. matures in Feb 2024 and was issued at 99.283 percent. The average coupon for the total issue amounts to 1.734 percent. The issue was substantially oversubscribed by more than 2.5 times and has been announced to be rated BB+ by Standard & Poor's.

With EUR 800 million, most of the net proceeds from the notes issuance will be used for financing the repurchase of the vast majority of the existing secured Schuldschein loans with a very positive effect on key financials of ADLER Real Estate AG. The average cost of debt (WACD) will decrease from the actual 3.5 percent to 2.7 percent. The refinancing will trigger a contribution to FFO I of approx. 11 million p.a. In relation to the expected FFO I for 2017 this corresponds to an increase of 28 percent. Moreover, ADLER will in future hold unencumbered assets of more than EUR 1 billion, with a positive effect on the flexibility to divest non-core assets as well as on rating.

Arndt Krienen, CEO of ADLER Real Estate, comments: "With the refinancing of the secured Schuldschein loans through an unsecured bond we have made significant progress on our path to an investment grade rating. The oversubscription underlines the good reputation ADLER enjoys in the capital markets. In our eyes, today's transformational move confirms that our new financial policy geared at reducing WACD and improving the rating proves very successful."

ADLER will make an application for the notes to be listed on the regulated market of the Irish Stock Exchange. It is expected that the notes will be admitted to trading on December 6, 2017.

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