Corporate News

25/10/2007 | Corporate News

Fair Value Immobilien Aktiengesellschaft acquires 34 Sparkasse (saving bank) properties in Schleswig-Holstein

  • New investment generates additional rental income of € 3.4 million p.a.
  • Rental return of 6.6% from long-term triple-net rental agreements
  • Pre-REIT status was primary factor for successful transaction


Munich, October 25, 2007 – Fair Value Immobilien-Aktiengesellschaft has acquired a total of 34 properties in Schleswig-Holstein from Sparkasse Südholstein. The properties will continue to be primarily used as branches of Sparkasse Südholstein in future as part of a sale-andrent- back. This investment has secured additional rental income of approx. € 3.4 million for Fair Value. At the same time, the real estate company is thus generating a rental return of around 6.6% p.a. and has significantly expanded its real estate portfolio.

In addition to larger towns such as Bad Bramstedt, Bad Segeberg, Kaltenkirchen, Neumünster, Norderstedt, Pinneberg and Uetersen, Fair Value will also own properties in locations such as Helgoland in future. The real estate portfolio acquired has a total rental area of 45,400 m². The 10 to 18-year rental agreements with Sparkasse Südholstein are Triple-Net agreements - the incidental costs and maintenance costs for the portfolio are oncharged in practically their full amount to the tenants. Around 80% of the rent is from Sparkasse Südholstein, and 20% is generated from other tenants. 95% of the possible income from the portfolio is currently being generated.

Frank Schaich, Fair Value's CEO, is very pleased with the successful transaction: "Our pre- REIT status was a decisive factor in securing this attractive real estate portfolio. Sparkasse Südholstein benefits from the Exit Tax advantages, and Fair Value has been able to further diversify its top-quality portfolio." Ownership, risks and rewards incident to the ownership of the property are scheduled to be transferred in December 2007.


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A REIT – Higher Return for Investors

REIT stands for Real Estate Investment Trust. The assets of these listed companies in Germany consist mainly of real estate and investments in other real estate companies.


At the international level, REITs have been established for many years. On 1 January 2007, they were introduced in Germany as well.


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Fair Value REIT-AG