17/12/2013 | Corporate News
Fair Value REIT-AG: Sale of a commercial property in Neuss
232Munich, December 17, 2013 – A property located in the Neuss-Grimlinghausen business park and owned by a subsidiary of Fair Value REIT-AG has been sold to local private investors.
The building, which features office, service and storage areas, has a rentable space totalling around 12,100 sqm and was built in 1990. The contractual annual rent of around EUR 0.5 million corresponds with an occupancy rate of around 91% of the achievable rent in the case of full occupancy. The remaining term of the lease agreements is around 2 years. The agreed sale price of EUR 5.5 million is 8% down on the carrying amount as of December 31, 2012. Fair Value REIT-AG holds an interest of around 72% in the selling subsidiary, which is to be dissolved after the transaction is completed.
Frank Schaich, CEO of Fair Value REIT-AG, comments on the sale of the Neuss property: “The sale price is below the market value determined by experts at the end of last year due to the vacancy within the building and the short remaining term of the lease agreements. However, by selling this property, we are reducing the proportion of non-strategic properties in our portfolio and are also able to dissolve this property company. This brings us one step closer to our stated aim of reducing the complexity of the Fair Value Group. Viewing the property sales during the current financial year as a whole, we have achieved an average IFRS sale profit before costs of 1.3% compared to the market value determined by experts at the end of the previous year. This proves that the value of our real estate portfolio has been realistically estimated overall.”
2013
