S IMMO successfully sells large office buildings in Vienna

Corporate news

S IMMO has signed contracts for the sale of the properties “Hoch Zwei” and “Plus Zwei” to the German Deka Immobilien. Both office buildings are located in the “Viertel Zwei”, a popular office and residential area in the second municipal district of Vienna. The two buildings comprise over 43,000 m² above-ground lettable area. The site is let to OMV. The transaction is subject to clearance by the Austrian Federal Competition Authorities. Closing of the transaction is expected to occur still in the third quarter of 2017. The purchase price is EUR 75m higher than the initial acquisition price of S IMMO in the year 2010 and confirms the high level of interest in the Viennese office market shown by international investors. CBRE supported the sale as real estate agent. In legal matters the lawyers Stefan Artner and Magdalena Brandstetter from DORDA were involved in the sale.

This transaction and the recently signed sale of the Serdika properties in Sofia considerably improve important balance sheet figures of S IMMO Group. After closing of these transactions the loan-to-value ratio will stand at roughly 50%. Moreover, as of 30 June 2017 the company expects significantly positive revaluation results confirmed by these transactions as well as a rise of EPRA NAV to over EUR 15 per share despite a dividend payout in June 2017 of EUR 0.40 per share.

Ernst Vejdovszky, CEO of S IMMO AG, commented: „Profits should be realised. This is part of our cycle-oriented strategy which we have succeeded to apply in this transaction very impressively. Still, a great deal of work lies ahead. S IMMO has an attractive development pipeline of more than EUR 600m. With that pipeline we are setting the foundation for a successful future.”