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Deutsche Annington Immobilien SE increases portfolio by more than 41,000 residential units

Deutsche Annington Immobilien SE  / Key word(s): Miscellaneous

28.02.2014 07:27

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE
UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN
WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

AD HOC ANNOUNCEMENT PURSUANT TO SECTION 15 GERMAN SECURITIES TRADING ACT

Deutsche Annington increases portfolio by more than 41,000 residential
units

Deutsche Annington announces acquisition of around 11,500 residential units
managed by DeWAG, integration of around 30,000 residential units owned by
Vitus group and capital increases out of authorized capital

Bochum, 28 February 2014 - Deutsche Annington Immobilien SE ("Deutsche
Annington") today resolved on the acquisition of around 11,500 residential
units managed by DeWAG, on the integration of a combined portfolio owned by
Vitus group of around 30,000 residential units  and on capital increases
out of authorized capital.

Both transactions meet the acquisition criteria communicated by Deutsche
Annington and are FFO and NAV accretive.

In this context, Deutsche Annington has reached an agreement in principle
with certain shareholders of the Vitus group ("Vitus") with respect to the
integration of certain Vitus entities comprising around 30,000 residential
units into the Deutsche Annington group for a consideration of EUR 1.4 bn
(including the assumption of certain liabilities and the repayment of third
party debt). The agreement in principle is subject to certain conditions to
closing (including satisfactory fulfillment of existing arrangements with
financing parties) and contains rights of withdrawal for both parties in
the event that the parties will not agree on certain open matters. The
agreement in principle is also subject to the approval of cartel offices
and certain shareholders of Vitus. Completion of the transaction is planned
for the fourth quarter of 2014.

In addition, Deutsche Annington entered into a purchase agreement with
respect to the acquisition of a portfolio of around 11,500 residential
units managed by DeWAG. The purchase price for this portfolio amounts to
about EUR 970 million (including the assumption of liabilities). The
acquisition is subject to certain conditions to closing. Completion of the
acquisition is planned for the second quarter of 2014.

The combined portfolio of about 41,500 residential units comprises floor
area of more than 2.6 million sqm. Furthermore, the transactions increase
Deutsche Annington's presence in northern Germany with over 9,500
residential units in Bremen and about 9,250 residential units in Kiel. The
vacancy rate of the combined portfolio is below 4 %.

Deutsche Annington will finance the transactions with the assumption of
existing liabilities and a combination of equity and debt instruments. J.P.
Morgan has, subject to certain conditions, including final agreement on the
price and other terms of any such equity placement, committed to underwrite
the total amount of the equity Deutsche Annington intends to raise in the
context of the financing of the transactions.

The planned capital increases are as follows:

A capital increase against cash contributions out of the existing
authorized capital of up to 16 million new shares and excluding
subscription rights of the existing shareholders. Such capital increase
against cash contributions are, subject to market conditions, planned to be
consummated before the completion of the aforementioned transactions. The
new registered shares with no par value, each with a notional value of EUR
1.00, shall be offered to institutional investors by way of an accelerated
bookbuilding.

Furthermore, as part of the total compensation in connection with the Vitus
transaction, Deutsche Annington resolved on a capital increase out of the
existing authorized capital and against contribution in kind and excluding
subscription rights of existing shareholders. For this purpose, the stated
capital of Deutsche Annington shall be increased by around EUR 12 million.
The new shares will hold dividend entitlements as of 1 January 2014.

As part of the refinancing of existing liabilities with respect to the
portfolios, it is planned to issue a hybrid bond and make use of the
existing EMTN programs.

Deutsche Annington expects that, following the consummation of the
transactions, the net ratio of financial liabilities (LTV-Ratio) will, in
the mid-term, slightly increase from 50 % to around 51 %. Based on the
value of Deutsche Annington's portfolio as of 31 December 2013, the gross
asset value (GAV) is expected to increase to about EUR 12.8 bn following
the consummation of the transactions.

 

    Additional information:

    Stock exchange: Regulated Market (Prime Standard), Frankfurt Stock
    Exchange

    ISIN: DE000A1ML7J1

    WKN: A1ML7J

    Common Code : 094567408

    Registered office of Deutsche Annington: Vogelsanger Weg 80, 40472
    Dusseldorf, Germany

    Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum,
    Germany

    

    Contacts: 

    Deutsche Annington Immobilien SE

    Thomas Eisenlohr

    Head of Investor Relations

    Telephone: +49(0)234-314-2384

    Thomas.Eisenlohr@deutsche-annington.com

    

    Deutsche Annington Immobilien SE

    Klaus Markus

    Head of Corporate Communications

    Telephone +49(0)234 314 - 1149

    Klaus.markus@deutsche-annington.com

This publication may not be published, distributed or transmitted, directly
or indirectly, in the United States (including its territories and
possessions), Canada, Australia or Japan or any other jurisdiction where
such an announcement would be unlawful. The distribution of this
announcement may be restricted by law in certain jurisdictions and persons
into whose possession this document or other information referred to herein
should inform themselves about and observe any such restriction. Any
failure to comply with these restrictions may constitute a violation of the
securities laws of any such jurisdiction.

This publication does not constitute an offer of securities for sale or a
solicitation of an offer to purchase securities of Deutsche Annington
Immobilien SE in the United States, Germany or any other jurisdiction.
Neither this announcement nor anything contained herein shall form the
basis of, or be relied upon in connection with, any offer or commitment
whatsoever in any jurisdiction. The securities of Deutsche Annington
Immobilien SE may not be offered or sold in the United States absent
registration or an exemption from registration under the U.S. Securities
Act of 1933, as amended (the "Securities Act"). The securities of Deutsche
Annington Immobilien SE have not been, and will not be, registered under
the Securities Act.

In the United Kingdom, this document is only being distributed to and is
only directed at persons who (i) are investment professionals falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are
persons falling within Article 49(2)(a) to (d) of the Order (high net worth
companies, unincorporated associations, etc.) (all such persons together
being referred to as "Relevant Persons"). This document is directed only at
Relevant Persons and must not be acted on or relied on by persons who are
not Relevant Persons. Any investment or investment activity to which this
document relates is available only to Relevant Persons and will be engaged
in only with Relevant Persons.

In member states of the European Economic Area ("EEA") which have
implemented the Prospectus Directive (each, a "Relevant Member State"),
this announcement and any offer if made subsequently is directed
exclusively at persons who are "qualified investors" within the meaning of
the Prospectus Directive ("Qualified Investors"). For these purposes, the
expression "Prospectus Directive" means Directive 2003/71/EC (and
amendments thereto, including the 2010 PD Amending Directive, to the extent
implemented in a Relevant Member State), and includes any relevant
implementing measure in the Relevant Member State and the expression "2010
PD Amending Directive" means Directive 2010/73/EU.

No action has been taken that would permit an offering of the securities or
possession or distribution of this announcement in any jurisdiction where
action for that purpose is required. Persons into whose possession this
announcement comes are required to inform themselves about and to observe
any such restrictions.

This information contains forward-looking statements that are based upon
current views and assumptions of the Deutsche Annington Immobilien SE
management, which were made to its best knowledge. Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors which could cause the earnings position, profitability, performance
or the results of Deutsche Annington Immobilien SE or the success of the
housing industry to differ materially from the earnings position,
profitability, performance or the results expressly or implicitly assumed
or described in these forward-looking statements. In consideration of these
risks, uncertainties and other factors, persons receiving these documents
are advised not to unreasonably rely on these forward-looking statements.
Deutsche Annington Immobilien SE does not assume any obligation to update
such forward-looking statements and to adjust them to any future results
and developments.


28.02.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Deutsche Annington Immobilien SE
              Vogelsanger Weg 80
              40472 Düsseldorf
              Germany
Phone:        +49 234 314 1761
Fax:          +49 234 314 888 1761
E-mail:       investorrelations@deutsche-annington.com
Internet:     www.deutsche-annington.com
ISIN:         DE000A1ML7J1
WKN:          A1ML7J
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Hamburg, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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