alstria enters sale and leaseback transaction with Württembergische Lebensversicherung AG
Office complex in Karlsruhe to be acquired by alstria / Württembergische Lebensversicherung AG to lease back the asset / FFO increases by EUR 3 million p.a.
Württembergische Lebensversicherung AG (S&P Rating: BBB+/stable) is one of the leading life insurance companies in Germany and part of the W&W-Group, which has more than 6 million customers and ranks among the Top 10 German insurance groups.
The total transaction costs to alstria are around EUR 36.2 million1. The office complex which is located in the city centre next to the Karlsruhe train station develops around 30,000 sqm of lettable area. The transfer of property and the start of the leaseback period are expected to happen in the course of the first quarter 2011.
This transaction will have a positive impact of around EUR 3 million on alstria's Funds From Operations on a full year basis. The FFO increase results from the net rental income expected from the asset, as well as the interest saving on the main syndicated loan facility of the company. This will translate in an increase of FFO of EUR 0.049 per share, which compares with the FFO dilution following the recent 10% capital increase of EUR 0.044 per share.
"This transaction allows us to add another prime client to alstria's portfolio and reinforce our position in Southern Germany through a long term leased asset", said Olivier Elamine, CEO of alstria office REIT-AG. "It also demonstrates alstria's ability to originate and execute accretive acquisitions, and to sustainably increase value for all its shareholders.
While we have only invested parts of the proceeds from the recent capital increase, this transaction already allows us to show FFO accretion. Further transactions will only improve our position."
alstria office REIT-AG
alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) focused solely on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006 and was converted into the first German REIT in October 2007. Its headquarters are in Hamburg. alstria office REIT-AG owns a diversified portfolio of properties across attractive German office real estate markets. Its current portfolio comprises 70 properties with an aggregate lettable space of approx. 780,000 sqm and is valued at approximately EUR 1.4 bn. The alstria office REIT-AG strategy is based on active asset and portfolio management as well as on establishing and maintaining good relationships with key customers and decision makers. alstria focuses on long-term real estate value creation.