21/03/2016 | Corporate News
Fair Value REIT-AG sells two properties in North Rhine-Westphalia and Schleswig-Holstein for a profit348
Munich, 21 March 2016 – Fair Value REIT-AG (ISIN DE000A0MW975) is systematically pursuing its portfolio streamlining policy and has sold two properties it no longer considered part of its core portfolio in Radevormwald, North Rhine-Westphalia, and in Tornesch, Schleswig-Holstein, for a profit.
The property in Radevormwald is a nursing home owned by the subsidiary BBV Immobilien-Fonds Nr. 8 GmbH & Co. KG, in which Fair Value REIT-AG had obtained a majority shareholding mid-2015 using funds obtained from the capital increase that was performed in May 2015. The property was acquired by an institutional investor focusing on nursing homes in Germany. At EUR 11.1 million, the sales price was 12% above the carrying amount at the time that the investment was acquired. The transfer of title, risks and rewards for the property has been agreed for the beginning of April 2016.
The property in Tornesch is a bank branch of Sparkasse Südholstein which was acquired by a local entrepreneur. At EUR 0.65 million, the sales price was 10% above the carrying amount as of 31 December 2014. Title, risks and rewards were transferred following payment of the purchase price on 17 March 2016.
Frank Schaich, CEO of Fair Value REIT-AG, commented on the transactions: “We acquired the property in Radevormwald through the acquisition of the investment in July 2015 as part of a property portfolio that also includes two shopping centres. As this property – as well as the one in Tornesch – is not part of our core portfolio, we sold them for a significant profit. We are delighted with this successful sale and the value it created. The sale proceeds for the two properties increase our headroom for further investments in commercial property at secondary locations in Germany as well as investment properties.”
Fair Value REIT-AG will publish its results for fiscal year 2015 on 23 March 2016 at www.fvreit.de in the Financial Reports section.