ADO Properties S.A.: Agreement Entered for Sale of a Real Estate Portfolio

Berlin, September 26, 2019. ADO Properties S.A. (the "Company") has today announced the entering into of a share purchase agreement (the "Share Purchase Agreement") with Gewobag Wohnungsbau Aktiengesellschaft, Berlin for the sale of 100% of the shares of certain subsidiaries owning 23 properties consisting in aggregate of approximately 5,800 residential apartment units. The sale price for the shares is EUR 920 million, less approximately EUR 340 million of net debt of the companies being sold. The assets are located in the Spandau and Reinickendorf districts in the West and the North of Berlin, most of which were acquired in 2015.

As of the Company's last reported June 30, 2019 financial statements, the loan to value ratio of the Company as a result of the sale is expected to decrease from 38% to approximately 21% and the EPRA Net Asset Value as a result of the sale is expected to increase to EUR 62.60 per share. ADO Properties S.A. is considering various opportunities with respect to the proceeds from the sale, including repaying existing indebtedness, acquiring additional real estate portfolios, and for general corporate purposes.

The Share Purchase Agreement is subject to a number of customary conditions, including merger control approvals.

Definitions of our alternative performance measures like loan to value ratio and EPRA NAV are available in our latest financial report under

https://www.ado.properties/websites/ado/English/4000/publications.html in the Financial Performance Indicators section.

 

Contact:
Nicole Müller, Legal Counsel