Colonia Real Estate AG (ISIN DE0006338007) (CRE) reached a binding
agreement with Oaktree Capital Management, LLC (Oaktree) to co-invest
in the previously acquired German office real estate Herkules
portfolio from Deka Immobilien Investment GmbH. The portfolio
comprises of 49 pan-German office properties. The parties agreed not
to disclose the purchase price.
Colonia Real Estate`s asset management subsidiary Resolution GmbH
advised Oaktree in the transaction and will be the dedicated asset
manager for the portfolio. Through refurbishment and a decrease of the
current vacancy rate Resolution GmbH plans to achieve a sustainable
enhancement on value.
With this deal Resolution GmbH more than doubles its assets of
managed properties to almost two billion Euro. Thus, the company
achieves already their originally for 2009 planned target of assets
under management. Moreover, the company, together with CRE, takes a
stake in the transaction. This deal proofs the innovative business
model of the Colonia Real Estate Group: a combination of proprietary
investment and asset management.
The exact stake will be determined at the closing of the
transaction which is planned for the beginning of December 2006. A
capital increase for the acquisition of the Herkules stake will not be
necessary.
"This transaction confirms our strategic approach and a high
synergetic potential of our business model: as an integrated real
estate investor we benefit long-term on both being an Asset Manager
and Co-Investor in one of the largest deals over the recent years. We
are very pleased that the well reputed and international investor
Oaktree decided to chose us as a partner and service provider in this
deal", Stephan Rind, CEO of Colonia Real Estate AG, comments on this
transaction.
Colonia Real Estate AG is a listed real estate investment group
focusing on the German market. Its integrated business model consists
of three synergistic cornerstones: The Investment Division
concentrates on high-yield residential property portfolios held for
the company's account and opportunistic co-investments in commercial
real estate together with prominent partners. Resolution GmbH
specializes in asset management for the Group as well as for complex
domestic real estate portfolios held by international investors, whom
it also advises on transactions. The focus is on yield optimization
and realizing appreciation potential. CRE Fonds Management GmbH's core
business is the conception, the marketing and the management of
structured investment products such as closed-end real estate funds
for institutional investors and private clients.
This news release contains forward looking statements based on
current assumptions and forecasts made by Colonia Real Estate Group
management. Various know and unknown risks, uncertainties and other
factors could lead to material differences between the actual future
results, financial situation, development or performance of the
company and the estimates given here. The company assumes no liability
whatsoever to update these forward-looking statements or to conform
them to future events or developments.
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Contact:
Christoph D. Kauter
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Koln
Telefon: +49 (0)221 71 60 71 0
E-Mail: kauter@cre.ag
Sylvia Faber
Citigate Dewe Rogerson GmbH
Goethestrasse 26-28
60313 Frankfurt am Main
Tel: 0049-69 90 500 - 100
Fax: 0049-69 90 500 - 101
E-Mail: sylvia.faber@citigatedr.de
Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8 50667
Koln Deutschland
Phone: 0221-716071-0
Fax: 0221-716071-99
E-mail: info@cre.ag
WWW: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt
(Prime Standard), Dusseldorf; Freiverkehr in Hamburg, Munchen,
Stuttgart
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