TAG IMMOBILIEN AG In the first week of December, a portfolio of 218 residential units in the Staaken district of Berlin with a total area of 16,300 m² was already sold for EUR 21.5 million. The package price is roughly equivalent to 18 times the current annual net cold rent. The property had been managed by TAG's property platform for several years and has a vacancy rate of 1.8%.
In mid-December, another 702 residential units in the Neukölln, Lankwitz and Charlottenburg districts of Berlin, with a total area of approximately 43,000 m², were sold at a price of EUR 54.5 million, or roughly 19 times the current annual net cold rent. The portfolio has an average vacancy rate of 5.3%.
TAG expects approximately EUR 30 million in net cash inflow from these two transactions.
Both disposals took place well above the book value of the properties in the currently high-priced Berlin area. The released equity is to be reinvested in further acquisitions with higher initial returns in TAG's core regions with development potential. Based on the acquisitions and sales, the FFO forecast for the financial year 2015 is confirmed, as the portfolios newly acquired in recent weeks compensate the FFO reductions from sales.
On an operational level the investment strategy coupled with regional marketing efforts is bearing further fruit. TAG COO Claudia Hoyer comments: "We were able to significantly reduce vacancy in our residential units again towards the end of fiscal 2014. While vacancy at year-end 2013 was 8.9%, and 8.6% at the end of Q3 2014, vacancy in December 2014 is down to 8.1%. Further vacancy reduction successes were achieved especially in the Salzgitter region, where vacancy is now 15.5% (Q3 2014: 16.6%; previous year: 18.6%)."
Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 0
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