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Swallowbird Trading & Investments Limited (ADO Properties) announces IPO plans for 2015

DGAP-News: ADO Properties GmbH / Key word(s): IPO2015-06-02 / 08:30---------------------------------------------------------------------Not for release, publication or distribution, directly or indirectly, in orinto the United States, Australia, Canada or Japan or any otherjurisdiction in which the distribution or release would be unlawful.Swallowbird Trading & Investments Limited (ADO Properties) announces IPOplans for 2015- Swallowbird Trading & Investments Limited, to be renamed ADO PropertiesS.A., targets listing on the regulated market (Prime Standard) of theFrankfurt Stock Exchange in 2015- The pure-play Berlin residential specialist has an approximate EUR 1.2billion quality portfolio with c. 13,700 residential units- Significant rental growth potential with 6.2% average annuallike-for-like residential rental growth over the period 2012 to 2014, dueto active asset management and focused capex- Strong track record in expanding the portfolio: IPO proceeds are intendedto be used mainly for add-on acquisitions of residential portfolios inBerlin and targeted investments in the current portfolioBerlin, 2 June 2015: Swallowbird Trading & Investments Limited, to berenamed ADO Properties S.A. ("ADO Properties" or the "Company"), apure-play Berlin residential specialist, is preparing for an initial publicoffering ("IPO"). The Company intends to list its shares on the regulatedmarket (Prime Standard) of the Frankfurt Stock Exchange in 2015. This wouldcreate the only Prime Standard listed real estate specialist focusedexclusively on Berlin.The offer is expected to consist of an issue of new ordinary shares and asale of existing shares from ADO Group Ltd., the Company's soleshareholder, which is listed on the Tel Aviv Stock Exchange. To support afast-track inclusion into the EPRA index, an offering size of at least EUR400 million is envisioned.Kempen & Co and UBS Investment Bank are acting as Joint Global Coordinatorsand Joint Bookrunners. Barclays and COMMERZBANK are mandated as additionalJoint Bookrunners. Arbireo Capital is acting as process manager and solefinancial adviser in the transaction."ADO Group Ltd. has actively supported ADO Properties in its dynamicexpansion during the past decade and is pleased to jointly enter the nextstage in the Company's development", says Shlomo Zohar, Executive ViceChairman of ADO Properties.ADO Properties intends to use the net proceeds for add-on acquisitions ofresidential properties or portfolios in its Berlin market as well astargeted capex investments in its current portfolio to continue itsexpansion and improve its portfolio in line with its targeted 45% to 50%LTV-ratio."ADO Properties has the clear strategy to create value through targetedinvestments in its portfolio, privatizations and accretive acquisitions. Weaim to approximately double the number of units over the next few years togenerate value for our shareholders, capitalize on our existing platformand further enhance the efficiency of our operations", says Rabin Savion,CEO of ADO Properties.Strong track record in building a pure-play Berlin residential real estateportfolioADO Properties specializes in the purchase and management of incomeproducing residential buildings in Berlin. The Company focuses on creatingvalue through focused modernization, refurbishment and repositioning ofcurrent and future portfolio assets. ADO Properties has local expertise inacquiring and repositioning properties and unlocking value potentialthrough investments and re-lettings. The strong Berlin residential marketis characterized by a combination of positive migration, increasingworkforce quality, increasing purchasing power, decreasing unemployment,decreasing average household size and limited supply of new rental stock.This is expected to result in continued rental growth to the benefit of theCompany's business.Since 2006, the Company has built an approximately EUR 1.2 billion qualityportfolio with a total of approximately 13,700 residential andapproximately 700 commercial units in Berlin's central locations and otherdistricts with attractive growth potential. The portfolio has a lettablearea of approximately 963,000 sqm. The most recent acquisition consistingof approximately 5,750 residential units, has provided a significantcontribution to annual in-place rent, which has strongly increased from EUR42 million as at year-end 2014 to approximately EUR 66 million as at end ofQ1 2015, and including the acquired units.Driven by active asset management and targeted capex investments, ADOProperties achieved 6.2% average annual like-for-like rental growth for theresidential portfolio from 2012 to 2014. In 2014, annual like-for-likerental growth increased to 8.0% and moreover to even 8.5% in thetwelve-month period ending 31 March 2015. In addition, the portfolio stillhas a reversionary potential to market rents of approximately 22%. Thefocus on Berlin enables the Company to capture additional growth potentialand the opportunity to create above average returns on its portfolioacquisitions.Value creation through a fully integrated, scalable in-house platform,active asset management and portfolio strategyADO Properties has built a fully integrated platform and organization withexpertise in in-house asset management, property and facility managementand construction management. The Company is continuously tailoring itsplatform to the needs of its growing portfolio, by which the Company canexploit economies of scale by managing a larger residential portfolio,without incurring significant additional costs. The focus on the Berlinmarket further increases the platform's efficiency and allows for a leanand specialized operational setup. Further economies of scale from add-onacquisitions are expected to have beneficial effects on profitability. Thisapproach has led to an EBITDA margin of 77% for 2014.Because of the scalable platform and management's knowledge of the Berlinmarket for almost a decade, ADO Properties is able to identify undermanagedassets whose quality can be improved to current market standards throughtargeted investments. As their core belief, ADO Properties is committed totenant satisfaction through its business approach."Our in-depth understanding of the local market provides us with attractiveacquisition and repositioning opportunities, particularly for undermanagedassets", says Rabin Savion. "Our strategy of active asset management allowsus to realize upside potential and to continuously improve our tenantstructure and apartment quality, due to refurbishments at fluctuation."In 2014, ADO Properties successfully initiated its strategy to realizevalue by converting properties into condominiums and selling them at pricesexceeding the current appraisal value of the properties. Approximately 13%of the current residential portfolio has been identified as havingpotential for privatization. ADO Properties targets privatizations ofapproximately 100 to 150 units per year from 2016 onwards. The Company willcontinue to assess the potential for condominium conversion andprivatization in portfolios that will be acquired in the future.Sustainable financing strategy ADO Properties focuses on a sustainable financing strategy that allows theCompany to benefit from attractive financing conditions and to reactquickly to opportunities for potential acquisitions. ADO Properties has aconservative balance sheet consisting mainly of mortgage backed loans withapproximately 2.6% average cost of debt, no major maturities until 2018 anda weighted average maturity of approximately six years.As of the end of Q1 2015, ADO Properties has a LTV-ratio of 57%. Post-IPO,the Company targets a moderate LTV-ratio of 45% to 50%, thus allowing forfast execution of acquisitions from the proceeds of the capital increase."Our conservative capital structure allows for predictable growth,supporting attractive and continuous dividends whilst ensuring that ourindebtedness does not restrict our business or strategy", says RabinSavion."ADO Group Ltd. and its major shareholder Shikun & Binui, are committed aslong-term strategic investors in ADO Properties", says Shlomo Zohar. Shikun& Binui is a globally established, leading Israeli infrastructure and realestate company, that has supported the Company in its growth over the pastyears.Press contactThomas RueckerRUECKERCONSULT GmbHWallstrasse 1610179 Berlin, GermanyTel.: +49 30 2844987-48Fax: +49 30 2844987-99ruecker@rueckerconsult.deAbout ADO PropertiesADO Properties is a pure-play Berlin-based residential real estate companywith approximately 13,700 residential units, including recent acquisitions.The Company has a fully integrated, scalable in-house platform with its ownproperty management. Along with the responsibility for the condition of itsapartments and buildings, ADO Properties also assumes responsibilitytowards people, employees and neighborhoods. The portfolio of ADOProperties is focused on central locations in Berlin and attractivedistricts at the city's outskirts.DisclaimerThis announcement does not contain or constitute an offer of, or thesolicitation of an offer to buy or subscribe for, securities to any personin the United States, Australia, Canada, Japan or in any jurisdiction towhom or in which such offer or solicitation is unlawful.This release is not an offer of securities for sale in the United States ofAmerica. Securities may not be offered or sold in the United States ofAmerica absent registration or an exemption from registration under theU.S. Securities Act of 1933, as amended (the "Securities Act"). Any publicoffering of securities to be made in the United States of America would bemade by means of a prospectus that could be obtained from SwallowbirdTrading & Investments Limited and would contain detailed information aboutthe Company and management, as well as financial statements. There will beno public offer of the securities in the United States of America.Subject to certain exceptions under the Securities Act, the securitiesreferred to herein may not be offered or sold in Australia, Canada or Japanor to, or for the account or benefit of, any national, resident or citizenof Australia, Canada or Japan.---------------------------------------------------------------------2015-06-02 Dissemination of a Corporate News, transmitted by DGAP - aservice of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at and 2015-06-02