EANS-News: GSW Immobilien AG acquires portfolio with around 2,600 apartments

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Company Information

Berlin (euro adhoc) - GSW Immobilien AG acquires portfolio with
around 2,600 apartments * Expansion continues * Approximately 7,000
apartments purchased in current year * Proceeds from capital increase
in May invested in full * Long-term positive impact on operating
margins and FFO

Berlin, 22 November 2012 - GSW Immobilien AG continues to expand and
has successfully completed another transaction. The MDAX-listed real
estate company has bought a portfolio with around 2,600 apartments
from Zentral Boden Immobilien (ZBI), a German initiator for
closed-end funds, at a total purchase price of around E147 million,
or E970 per square metre. Until now the properties had been part of
the fund "ZBI Professional 5". The average in-place rent is E5.39 per
square metre per month. Conclusion of the contracts - in line with
standard market conditions - is expected by the end of the year.
Around 82 percent of the properties are situated in the districts of
Neukölln (35 percent), Mitte (21 percent), Tempelhof-Schöneberg (12
percent), Reinickendorf (11 percent) and Steglitz-Zehlendorf (3
percent). The other units are in the cities of Duisburg, Essen,
Erfurt, and Magdeburg. "We plan to resell the approximately 470
residential units outside of Berlin in the medium term," explained
Jörg Schwagenscheidt, Member of the Board of Management of GSW
Immobilien AG, whose responsibilities include acquisitions. The
following key figures apply to the Berlin properties with around
2,130 residential units: In-place rent stands at E5.52 per square
metre per month with further upward potential, and the vacancy rate
is 1.6 percent. The average apartment size in Berlin is around 58
square metres. With this acquisition and those made at the end of
October, GSW has expanded its portfolio by a total of 7,000
apartments, more than 6,500 of which are in Berlin. The majority of
these are situated in the immediate vicinity of GSW's existing
housing stock and complement it perfectly. "We have now invested the
around E190 million from the capital increase," said Thomas
Zinnöcker, CEO of GSW Immobilien AG. "The successful acquisitions
also vindicate our growth strategy," he added. "GSW will finance the
approximately 2,600 apartments in this latest transaction through
part of the net proceeds from the issue of convertible bonds, as the
property portfolio is being acquired from the seller unencumbered,"
said CFO Andreas Segal.

However, the acquisitions will only impact earnings in the long term
from 2013 as the transfer of risks and rewards or ownership is to be
completed at the turn of the year. "Starting from next year, the new
portfolios will have a positive impact on our operating margins,"
said Schwagenscheidt. "We therefore calculate an FFO contribution of
E14.5 to E15.5 million from the acquisitions from 2013 considering
the use of the proceeds from the capital increase and convertible
bonds."

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 30 25 34 13 32 Tel.: +49 30 25 34 18 82
Fax: +49 30 25 34 19 34 Fax: +49 30 25 34 233 19 60

About GSW

With a portfolio of around 52,100 residential units, GSW Immobilien
AG is one of the leading private residential property companies in
Berlin. GSW's corporate strategy is focused on the long-term
management of rental properties, applying a systematic approach aimed
at increasing both customer satisfaction and operating efficiency. As
per 31 December 2011, the company's property portfolio was valued at
around E2.9billion. Since then, GSW has acquired approximately 7,000
apartments with a value of around E350million.

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