DGAP-News: Deutsche Konsum REIT-AG / Key word(s): Acquisition/Real Estate
Deutsche Konsum REIT-AG with six purchases and five sales
Potsdam, 7 July 2022 - Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) has acquired six mainly food-anchored local retail properties in Saxony and Saxony-Anhalt in several transactions by notarial deeds.
In the Saxon municipalities of Dippoldiswalde and Grünhain-Beierfeld, DKR was able to acquire in each case one property with the anchor tenant Penny (REWE Group). In addition, the purchase of three retailers with the main tenants EDEKA (2x) and TEDi in Kemberg, Köthen and Coswig (all Saxony-Anhalt) was notarised. Furthermore, a retail park in Olbernhau (Saxony) was acquired. The anchor tenants of this property are Netto (EDEKA Group) and a non-food discounter.
The purchase price of the six properties, which have a combined rental area of around 9,000 sqm, amounts to a total of approximately EUR 9.2 million, which corresponds to 11.6 times the annual rent. Taking into account the annualised rent of currently TEUR 793, this results in an average acquisition yield of 8.6% with a WALT of 4.2 years and a vacancy rate of 1.6%.
In the current financial year 2021/2022, DKR has thus so far acquired 21 non-cyclical and mainly food-anchored retail properties with a rental area of around 67,500 sqm and an annual rent of approximately EUR 5.0 million for around EUR 58.6 million, which corresponds to an average initial yield of 8.5%. The average WALT is 5.3 years with a vacancy rate of around 6.5%.
This is contrasted by another package sale of three Penny stores in Ueckermünde, Rövershagen (both in Mecklenburg-Western Pomerania) and Schwerte (North Rhine-Westphalia), which was notarised at the end of June 2022. The sales price for the three properties with an annual rent of approximately TEUR 436 amounts to EUR 8.1 million, which corresponds to 18.6 times the annual rent and leads to significant capital gains.
Furthermore, two vacant properties in Obertraubling and Scheyern (both in Bavaria) were sold for a total of EUR 2.8 million. Both properties were sold to local investors for significantly more than their current book value as part of a portfolio optimisation.
Taking into account all notarised acquisitions and sales, the pro forma portfolio thus comprises a total of 179 properties with a total lettable area of approx. 1.04 million sqm and a balance sheet value of around EUR 1 billion. The portfolio currently generates an annual rent of EUR 71.4 million.
Through the opportunistic sales of individual properties at attractive high purchase price factors and the simultaneous purchase of new properties at the sought-after significantly lower purchase price factors, DKR has increased the portfolio's rental income and thus created additional value for its shareholders.
DKR's acquisition pipeline is currently broadly filled, and acquisitions with a total volume of more than EUR 100 million are currently under review. This involves a wide range of properties - from stand-alone discount grocery stores to large retail parks. At the same time, the Company continues to be open to opportunistic property sales, provided that this can create added value for the shareholders.
About Deutsche Konsum
Deutsche Konsum REIT-AG, Broderstorf, is a listed real estate company focusing on German retail properties for everyday goods in established micro-locations. The focus of the Company's activities is on the acquisition, management and development of local retail properties with the aim of achieving a steady increase in value and the lifting of hidden reserves.
Due to its German REIT status ('Real Estate Investment Trust'), the Company is exempt from German corporation and trade tax. The shares of the Company are listed on the Prime Standard of Deutsche Börse (ISIN: DE 000A14KRD3) and on the JSE (JSE Limited) (South Africa) by way of a secondary listing.
Deutsche Konsum REIT-AG
|Company:||Deutsche Konsum REIT-AG|
|Phone:||+49 (0)331 740076517|
|Fax:||+49 (0)331 740076520|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; JSE Securities Exchange|
|EQS News ID:||1391699|
|End of News||DGAP News Service|