LEG Immobilien AG / Key word(s): Miscellaneous
09.10.2014 18:22

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad hoc disclosure

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

LEG Immobilien AG acquires portfolio of around 9,600 residential units, raises earnings outlook for 2015 and resolves share capital increase by a nominal amount of EUR 4,100,000

Dusseldorf - A subsidiary of LEG Immobilien AG, acting as the buyer, and Deutsche Annington Immobilien SE, acting as the seller, today signed an agreement for a portfolio transaction for around 9,600 residential units by way of the indirect acquisition of the respective property companies. The transaction is for the sale of part of the former Vitus portfolio and comprises the properties in North Rhine-Westphalia. Including the transaction costs, LEG's total investment amounts to EUR 484 million. Among other things, the transaction costs include the assumption of the proportionate refinancing costs that were incurred by Deutsche Annington in connection with the acquisition of the Vitus portfolio.
The portfolio is distributed over various locations in NRW, while its most important local markets are Mönchengladbach, Wuppertal and Leverkusen. The top six locations account for a share of 88%. The current annualised net cold rent is around EUR 35 million, rent per square metre EUR 4.76 and the vacancy rate is 3.9%.

55 employees (FTEs) are to be taken on in the context of the transaction. Following antitrust approval, the closing of the transaction is expected in the course of October 2014.

LEG Immobilien AG will finance the transaction with cash, funds from the convertible bond placed in April 2014 and borrowed capital.
In light of the acquisition of around 9,600 residential units, LEG Immobilien AG is raising its earnings outlook for the 2015 financial year. FFO I (funds from operations) are expected to be in a range of EUR 188 million to EUR 193 million. This translates into an FFO per share of EUR 3.29 to EUR 3.39. LEG Immobilien AG's previous earnings outlook for 2015 had been EUR 172 million to EUR 177 million.

Moreover, with the consent of the Supervisory Board and confirmation by the Executive Committee of the Supervisory Board, the Management Board of LEG Immobilien AG today resolved to utilise some of its existing authorised capital and to increase the share capital of the company by EUR 4,100,000 against the issue of 4,100,000 new registered shares of the company with dividend rights for the 2014 financial year under exclusion of shareholder pre-emption rights.

The net proceeds are earmarked for further implementing the acquisition strategy and thereby generating further economies of scale whilst optimizing the capital structure at the same time.
Furthermore, parallel to the capital measure by the company, 2,365,940 shares held by Perry Luxco RE S.à r.l. are to be offered to institutional investors in a further private placement.

The new shares as well as the shares held by Perry Luxco RE S.à r.l. will be offered to institutional investors by way of private placement in accelerated book building. The placement price and the proceeds from the issue will be announced after the price has been determined. Deutsche Bank and Goldman Sachs International will act as Joint Bookrunners.
Düsseldorf, October 9, 2014

Forward-Looking Statements

This publication may contain forward-looking statements based on current assumptions and forecasts made by LEG Immobilien AG management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Notice

This publication does not constitute a public offer of securities in Germany. It is not for publication or distribution, directly or indirectly, in or into the United States of America. This publication does not constitute an offer to sell securities, or a solicitation of an offer to buy securities, in the United States of America or in any other jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities of LEG Immobilien AG described herein have not been and will not be registered under the Securities Act, or the laws of any State, and may not be offered or sold within the United States of America, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. LEG Immobilien AG does not intend to register any portion of the offering in the United States of America or conduct a public offering of securities in the United States of America.

09.10.2014 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      LEG Immobilien AG
              Hans-Böckler-Straße 38  
              40476 Düsseldorf
              Germany
Phone:        +49 (0) 211 / 4568 - 0
Fax:          +49 (0) 211 / 4568 - 261
E-mail:       
Internet:     www.leg-nrw.de
ISIN:         DE000LEG1110
WKN:          LEG111
Indices:      MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr               in Berlin, Düsseldorf, Stuttgart
 
End of Announcement DGAP News-Service  

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