CONSUS Commercial Property AG: CONSUS becomes the leading residential development platform across German 9 Large Cities

CONSUS becomes the leading residential development platform across German 9 Large Cities

- CONSUS has completed the integration of CG Gruppe, the leading German residential developer

- CONSUS is the first listed integrated Real Estate Developer in Germany with a current market capitalisation of around EUR 700 million

- Strategic shareholder Aggregate Holding S.A. holds 69.7% stake post-merger

- Buy-to-hold commercial assets division complements development portfolio with recurring rental income and FFO

- Guidance of EUR 280-290 million development for run-rate 2020 EBITDA according to planning with above average returns of 30%+ Return on Capital Employed (ROCE)

Leipzig, 6 November 2017 - CONSUS Commercial Property AG ("CONSUS", ISIN DE000A2DA414), has completed its repositioning as the leading German residential development platform in the largest 9 German cities with the registration of the contribution in kind for the 50 % majority stake in CG Gruppe. CONSUS is a unique combination of a high growth, high return de-risked developer with EUR 4.6 billion in developer volume with a portfolio of buy-to-hold commercial assets.

Through the contribution in kind, CONSUS's share capital has increased by EUR 55,650,383 to EUR 79,850,383 with a current market capitalisation of around EUR 700 million. As a result, Aggregate Holding S.A., a strategic real estate investor, now holds a 69.7 % share of the company. Concurrently, a EUR 150.0 million bond with a 4.75 % coupon has been issued to Aggregate Holding S.A.

CONSUS is targeting the structurally undersupplied and fragmented German residential real estate development market in the nine largest German core cities, where more than 1.1 million newly built apartments are expected to be required through to 2030. CONSUS' unique approach combines a new construction system, using digital industrialization with partners RIB Software and Flextronics, and a de-risking of the development projects through early forward sales to institutional investors for more than 80 % of the total development volume.

With 44 owned projects for a total EUR 4.6 billion development volume and a combined 1.3 million sqm sellable area, CONSUS is the largest residential developer in Germany's top 9 cities and diversified across projects and cities. According to planning CONSUS expects a run-rate 2020 EBITDA of EUR 280-290 million, delivered from existing developments with new developments providing further growth. The average EBITDA margin of the development segment is above 20 % with a highly competitive Return of Capital Employed (ROCE) of above 30 %. The forward sales model is an integrated element of CONSUS' business and financial strategy, with AAA institutional investors purchasing primarily rental apartment blocks from CONSUS as long-term counterparties and repeat clients. The current forward sale volume stands at a total of EUR 1.6 billion, of which approx. EUR 660 million is under LOI. Through the high cash flow impact via forward sales, the development segment is self-financed and the long-term leverage will decrease significantly over the next three years.

In the commercial assets segment, CONSUS currently owns 8 office assets with a total GAV of EUR 145.5 million (as of 30 June 2017 EUR 103.8 million). CONSUS' existing commercial assets are complemented by two commercial assets developed by CG Gruppe within broader Berlin and Leipzig developments, with around EUR 198 million GAV. CONSUS expects to acquire another portfolio of commercial assets in the fourth quarter, which would result in a critical mass of around EUR 500 million GAV. The current CONSUS office assets and the developed CG commercial assets generate a run-rate net rental income of around EUR 18 million with strong recurring FFO. As part of the review of the first half year financials, the new management team has adjusted the EBIT to around EUR -0.2 million due to one-off adjustments.

Norbert Kickum, CEO of CONSUS stated: "We have created a business model that covers the entire real estate value chain from the development to buy-and-hold assets. We are excited to focus on executing the clearly defined growth targets and are on track to establish a uniquely integrated real estate platform in Germany."

A company presentation with a detailed description of CONSUS's business, operations, and portfolio, as well as the adjusted 1H 2017 financials are available on the company website www.CONSUS-cp.de.

About CONSUS Commercial Property AG
CONSUS is the leading German residential development company in the German largest 9 cities. It also holds a portfolio of high yielding German commercial real estate portfolio.

Press contact:
edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
Phone: +49 69 905505-52
Email: CONSUS@edicto.de