EANS-News: GSW Immobilien AG adds around 4,400 apartments to its Berlin property portfolio

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Company Information/Acquisitions

Berlin (euro adhoc) - GSW Immobilien AG adds around 4,400 apartments
to its Berlin property portfolio

* Acquisition of three property portfolios * Attractive addition to
the existing housing stock * Majority of proceeds from capital
increase ploughed into acquisition * Promising negotiations ongoing
for 3,000 more apartments

Berlin, 25 October 2012 - GSW Immobilien AG has negotiated the
purchase of around 4,400 apartments in Berlin in three transactions.
The execution of the contracts is subject to the usual market
conditions and is expected to be completed by the end of the year.
The properties are in the districts of Spandau (43 percent), Mitte
(26 percent), Reinickendorf (12 percent), Charlottenburg-Wilmersdorf
(11 percent) and Treptow-Köpenick (8 percent). Around 88 percent of
the rental units were constructed before 1949 and are therefore in
one of the most attractive age categories. The other properties (12
percent) date from the 1950s and 1960s. Rental levels for all the
apartments average around EUR 5.32 per square metre per month, while
the average vacancy rate is 2.4 percent. The purchase price for the
three portfolios was around EUR 200 million. "The majority of
buildings in the newly acquired portfolios are in the immediate
vicinity of our existing housing stock and complement it perfectly.
The purchases will have a positive impact on our average rents in the
overall portfolio", explained Jörg Schwagenscheidt, whose
responsibilities as COO of the MDAX-listed property company include
acquisitions. With the biggest portfolio of the three transactions,
GSW is buying back properties that were sold to a foreign investor in
2005 as part of the GSW privatisation, and that have since been
managed by a GSW subsidiary which was recently sold to Strabag. "In
addition to the purchase price, other key factors for us were that we
know the portfolio well, it fits in perfectly with our properties,
and the vast majority of the apartments have been either partially or
completely modernised", explained Schwagenscheidt. "We are also in
the midst of promising negotiations for a further 3,000 apartments.
We're confident that we will be able to finalise binding purchase
contracts before the end of this year", he added.

The purchases also have an impact on GSW's overall result. However,
this will not take full effect until next year, as the risks and
rewards of ownership and the shares are not set to be transferred
until the turn of the year. "As a result of the current acquisition,
we expect a long-term positive impact on our operating margins and
FFO", said Andreas Segal, CFO of GSW.

GSW was able to quickly arrange the financing of the new apartment
portfolios. The terms are in the mid-range of the GSW loan portfolio.
"Across the three portfolios, equity accounts for around 50 percent
in total", said GSW CEO Thomas Zinnöcker. "With these new
acquisitions as well as those we plan to have completed by the end of
this year, we expect that we will have invested the majority of the
capital increase from May".

Contact
GSW Immobilien AG
Charlottenstraße 4, 10969 Berlin
Germany

Press Investor Relations
Thomas Rücker Sebastian Jacob
E-mail: thomas.ruecker@gsw.de E-mail: sebastian.jacob@gsw.de
Tel.: +49. (0) 30. 25 34-13 32 Tel.: +49. (0) 30. 25
34-18 82
Fax: +49. (0) 30. 25 34-19 34 Fax: +49. (0) 30. 25
34 233-19 60

Further inquiry note:
Kati Pohl
Tel.: +49 30 25 34-13 40
E-Mail: Kati.Pohl@gsw.de

end of announcement euro adhoc
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company: GSW Immobilien AG
Charlottenstr. 4
D-10969 Berlin
phone: +49 30 68 99 99 0
FAX: +49 30 68 99 99 999
mail: kundenservice@gsw.de
WWW: http://www.gsw.de
sector: Real Estate
ISIN: DE000GSW1111
indexes: MDAX
stockmarkets: regulated dealing: Berlin, regulated dealing/prime standard:
Frankfurt
language: English