(Vienna/Munich, 22-08-2017) The secured sales pipeline of UBM Development AG is growing steadily. The Leuchtenbergring project has been sold to Real I.S. in the form of a forward deal. The handover is planned for mid-2018; an advance payment of EUR 75 mn will already be made in the fourth quarter of 2017.

The hotel and office development Leuchtenbergring in Munich is another success story for UBM subsidiary Münchner Grund Immobilien Bauträger GmbH. This prime property has been sold for EUR 190 mn to an open-end real estate fund of Real I.S. The building, which already holds LEED Gold certification, has excellent traffic and transport links with its own access to the Mittlerer Ring and the S-Bahn-station Leuchtenbergring.

'Leuchtenbergring 20 is a landmark project. It represents optimal utilisation of our portfolio, whereby we have succeeded in taking a property with ongoing yields in our pipeline and developing it exceptionally well', said Dr. Bertold Wild, Chairman of the Management Board of Münchner Grund and member of the UBM Executive Committee.

Leuchtenbergring - an attractive location with great potential for tenants

With total lettable space of around 35,000 square metres, the Leuchtenbergring project will be spread across six floors aboveground and two basements, with 387 underground parking spaces. The existing hotel building is being expanded to include a total of 279 rooms as well as high-quality office and retail space. Prominent tenants such as Scout 24, the leading operator of online marketplaces in the German-speaking world, as well as the longstanding company Zweirad-Center Stadler and the four-star Holiday Inn hotel have already signed long-term rental agreements and will ensure an occupancy rate in excess of 75% one year ahead of completion.

Impact of the sale on UBM

The transaction in the form of a forward deal will first have an impact on net debt in the fourth quarter of 2017 upon an advance payment of EUR 75 mn. The full impact will only take effect after the planned handover in the second quarter of 2018.

Time of impact

Q4/2017* and Q2/2018 resp.

Net sales proceeds*

around EUR 190 mn

Effect on total output

94%

Effect on revenue

100%

Effect on net debt*

100%

* An advance payment of EUR 75 mn will be made in Q4/2017. The remainder of the purchase price will be settled at the point of handover, anticipated in Q2/2018.

UBM Development AG is the leading hotel developer in Europe. The strategic focus is on the three clearly defined asset classes Hotel, Office and Residential and the three core markets of Germany, Austria and Poland. With 144 years of experience, UBM focuses on its core competency - developing real estate. UBM has been listed on the prime market segment of the Vienna Stock Exchange since August 2016.

Münchner Grund Immobilien Bauträger GmbH is a subsidiary of UBM Development AG. The company operates as a project and property developer throughout the whole of Germany. The focus is on the asset classes Hotel, Office and Residential. From design and planning to development and construction to sales or letting, the developer offers all services from a single source. Münchner Grund has more than 50 years of experience and exclusively builds high-quality, sophisticated and profitable property for investors.

For enquiries:

Dr. Bertold Wild

Chairman of the Management Board

Münchner Grund Immobilien Bauträger GmbH

Tel.: +49 89 74 15 05 28

Email: kontakt@muenchnergrund.de

Milena Ioveva

Head of Investor Relations & Corporate Communications

UBM Development AG

Tel.: +43 (0)50 626-1763

Email: public.relations@ubm.at

UBM Realitätenentwicklung AG published this content on 22 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2017 11:27:03 UTC.

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