DGAP-News: Deutsche Konsum REIT acquires 29 food-anchored retail properties for EUR 64 million

Press release

Deutsche Konsum REIT acquires 29 food-anchored retail properties for EUR 64 million

Broderstorf, 12 February 2020 - With recent notarisation Deutsche Konsum REIT-AG ("DKR") (ISIN DE000A14KRD3) has acquired 29 food retail properties.

These comprise a portfolio of 27 food retail stores in Bavaria and Saxony (1) with anchor tenant Edeka (> 90%) and other complementary retail tenants. All properties have already been established at their locations for many years and each fulfils an important supply function there. The portfolio has a rental area of approximately 37,000 m² and generates an annual rent of around EUR 2.9 million. The current remaining lease term averages five years with a vacancy rate of around 4%.

DKR also acquired the "City Center" in Eisenhüttenstadt (Brandenburg). This is a local retail centre that has been established for many decades in a prime specialist retail location with around 28,900 m², which was extensively modernised in 2017. Current anchor tenants include food retailers Edeka and Pennymarkt (Rewe) as well as Rossmann, Woolworth, Hammer and other suppliers of daily consumer goods and services. The annual rent is currently around EUR 2.1 million with a remaining lease term of around six years. There is currently a vacancy rate of approximately 35%, for which there is already concrete interest in renting in some cases.

In addition, a food discounter with anchor tenant Netto (Edeka) in Schönwalde-Glien (Brandenburg) was acquired. The property has a rental area of 1,100 m², is fully let and generates annual rent of approximately kEUR 130. The remaining lease term is approximately four years.

The purchase volume for all properties amounts to approximately EUR 64 million, resulting in a purchase yield of more than 8%.

Including this acquisition in the financial year 2019/2020 the property portfolio of Deutsche Konsum grew by 44 properties with a purchase volume of more than EUR 170 million and an annual rent of EUR 15.6 million already. Thus, the total portfolio (pro forma) currently comprises of 166 properties with a total rental space of more than 900,000 m² and a book value of around EUR 0.8 billion. The portfolio currently generates an annual rent of around EUR 64.4 million.

In addition, DKR is in concrete purchasing processes and expects further acquisitions shortly.

About Deutsche Konsum
Deutsche Konsum REIT-AG based in Broderstorf is a listed real estate company focusing on retail properties in Germany for goods required for daily use ("basic retail") in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves.
Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Boerse (ISIN: DE 000A14KRD3).

Contact:
Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
E-Mail: [email protected]
Phone: +49 (0) 331 74 00 76 - 533