VIVACON AG increases number of owned residential units by further acquisitions and announces trading statement
Köln (euro adhoc) -
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real estate
Cologne, 30th July 2007. VIVACON AG (ISIN 000604 8911) has increased its holdings of residential properties by further 1,700 units through the acquisitions via subsidiaries in various off-market transactions. The units are primarily located in North Rhine-Westphalia, Lower Saxony and Bremen with a total rentable area of approximately 110,000 sqm. The occupancy rate is about 87%.
Trading Statement In Q2 2007, a further 540 residential units were sold to WIAG, the Joint Venture with Forum Partners. The total number of units held by WIAG thus amounts to approximately 4,400 units. The total number of units owned by VIVACON AG (excluding WIAG) currently amounts to around 8,500 units. Further residential real estate portfolios of several thousand units are in active due diligence.
Vivacon is very satisfied with the current business development and confirms its previously communicated full-year forecast. The H1 2007 results will be published on 13 August.
Comments on the current market situation VIVACON AG has no direct exposure to the US Real Estate and Financial markets and is therefore not dependent on the US market. The Company is not affected by the current problems of the US subprime mortgage segment. The focus of VIVACON AG is solely on German residential real estate assets, which in international comparison offer high yields. Buyers of German residential real estate assets are international real estate investors from various countries. The financing of real estate portfolios is funded by various German and international banks. The financing is structured in the form of loans secured by land charges and not as leveraged buyouts. The latest securitization of ground lease rights obtained an AAA rating and VIVACON AG expects a further strong undiminished demand for assets of this rating class.
The German real estate market continues to develop positively. The high acquisitions prices of the recent larger transactions with acquisition multiples of 16-18x by annual rent shows the unchanged high interest in German residential real estate. Disposals by opportunistic investors clear the way for the next generation of strategic investors with a mid- to long-term investment horizon. The German residential real estate market is currently characterised by very high volumes, which may increase further as a result of the potential abolition of EK02 reserves. As a leading intermediary in the German residential real estate market, the Company expects a positive impact from a potential increase in market volumes.
end of announcement euro adhoc 30.07.2007 15:28:19
Further inquiry note:
Sven Annutsch
Head Corporate Finance
Tel: + 49 221 / 1305621 630
Sven.Annutsch@vivacon.de
Lars Schriewer
Director Communikation
Tel: + 49 221 / 1305621 631
Lars.Schriewer@vivacon.de
Vivacon AG
Bayenthalgürtel 4
50968 Köln
Fax: + 49 221 / 1305621 950
http://www.vivacon.de
Branche: Real Estate
ISIN: DE0006048911
WKN: 604891
Index: CDAX, SDAX, Prime All Share, Classic All Share
Börsen: Börse Frankfurt / official dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / official dealing