GxP German Properties : announces closing of property transaction in Berlin-Teltow and looks back at successful asset management activities in 2017

GxP German Properties announces closing of property transaction in Berlin-Teltow and looks back at successful asset management activities in 2017

- Real estate portfolio increased to 12 properties with annualized rental income of EUR 10.7 million

- Active portfolio management is reflected in the improvement of all relevant real estate key performance indicators

- As of 31 December 2017, portfolio WAULT increased to 3.5 years and vacancy rate decreased to 12.1 percent

- In the portfolio purchased 12 months ago, the vacancy rate was reduced by almost 30 percent on a like-for-like basis while rental income rose by 6.7 per cent

Frankfurt, 22 December 2017 - GxP German Properties AG (ISIN: A2E4L0) today announced the successful closing of its property acquisition in Berlin-Teltow. The office building has a lettable area of approximately 10,000m² and is almost fully let with an occupancy rate of 99 percent. The weighted average lease term (WAULT) is 4.2 years, while annual rental income totals approximately EUR 1.1 million. The current value of the property is about EUR 18.2 million.

Completing this transaction brings to a close GxP's first full financial year as a listed real estate company. This period was characterized by expansion of the real estate portfolio and active portfolio management aimed at creating value. The company's strong in-house asset management team, local expertise and reliable network reduced the vacancy rate quickly and helped improve tenant loyalty.

Overall, the portfolio increased to 12 properties as a result of acquisitions in Berlin-Teltow, Frankfurt am Main and Hamm in the second half of 2017. Total lettable space increased by around 27,000m² to approximately 107,000m².

These acquisitions, combined with active asset management, enabled GxP to significantly increase the remaining lease terms in the portfolio, with WAULT rising to 3.5 years by the end of December. The overall vacancy rate in the GxP portfolio was reduced to 12.1 percent in 2017, while annualized rental income is currently up to EUR 10.7 million after EUR 6.1 million at the end of 2016. 18 Leases were signed for more than 14,500m².

One particular point of focus of GxP's asset management activities was its 'Thor portfolio' which has been acquired in December 2016. Since its acquisition, the vacancy rate in this portfolio has been significantly reduced from 20.8 percent to 14.5 percent at the end of 2017, while WAULT was increased by 1.2 years to 3.2 years. The main contributing factors to this were successful lease renewals for around 10,000m² of space and new leases for 4,200m² of space. Annualized rental income in the Thor portfolio rose accordingly by around 6.7 percent to approximately EUR 6.6 million.

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Axel Mühlhaus / Patrick Wang
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E-mail: gxp@edicto.de