09/08/2011 | Corporate News
Fair Value REIT-AG sells Sparkasse branch property at a profit
55Munich, August 9, 2011 – Fair Value REIT-AG has sold a property in a central commercial location in Rellingen near Hamburg. The building is currently rented to Sparkasse Südholstein. The sales price for the property held in part ownership is € 675 thousand, which represents 15.7 times the annual rent. This figure is therefore around 21% above the market value of around 13 annual rents fixed on December 31, 2010.
The buyer also purchased the residential part of the property (three flats) not owned by Fair Value, making him the sole owner of the building in the future. The transfer of benefits and encumbrances is due to be concluded by September 30, 2011.
Frank Schaich, CEO of Fair Value REIT-AG, explains: "This sales price being substantially above the previous market valuation proves the sustained rise in interest in smaller real estate investments, as well as the intrinsic value of these properties in the Fair Value REIT-AG. In addition, this transaction was made in harmony with our strategy of improving cost structures also by selling smaller properties and successively increasing the average investment volume per property."
2011
