DGAP-News: WCM acquires retail asset through issuance of a mandatory convertible above NAV and current stock-market price

WCM acquires retail asset through issuance of a mandatory convertible above NAV and current stock-market price

- Acquisition of a retail centre with rental space of around 12,300 square metres

- Purchase price is financed amongst others, through a mandatory convertible with a conversion price of EUR 2.90 per share

- Annualized rental income of around EUR 1.4 million and FFO I of more than EUR 1 million

- EPPRA vacancy rate of 4.8 per cent only and a leading food retail chain as long term anchor tenant

Frankfurt am Main, 20 February 2017 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) further expands its asset base through the acquisition of an attractive asset in the retail sector. Effective 1 February 2017, a long-established local retail centre in a perfectly connected location in Jena, federal state of Thuringia, was acquired. The retail centre comprises a total rental space of 12,304 square metres for a purchase price of EUR 21.0 million.

The acquisition is financed through a mandatory convertible, subscribed by the vendor, under which 2.1 million new shares will be issued. The subscription price of EUR 2.90 per share is above the latest published EPRA NAV of EUR 2.56 (as per 30 September 2016) and 3.6 per cent above the closing price of 17 February 2017. The convertible carries 1.5 per cent interest and becomes due on 30 June 2017. The remaining amount was settled with EUR 1.6 million in cash and by taking over an already existing EUR 13.0 million loan.

With a EPRA vacancy rate of only 4.8 per cent the newly acquired asset in Jena generates an annualised rental income of around EUR 1.4 million. The implied gross initial yield amounts to around 6.7 per cent. The anchor tenant of this property is a leading German food retail chain. The weighted average lease time (WALT) for the acquired retail centre is 5 years. The average Funds from Operations (FFO I) amount to more than EUR 1 million. This corresponds to an FFO yield of approximately 12 per cent.

About WCM

WCM Beteiligungs- und Grundbesitz-AG (WCM AG), with headquarters in Frankfurt am Main, is a specialised commercial real estate company. As a real estate proprietor, the focus is on long-term rental of high-quality office and retail properties in the major office locations in Germany. Since the operational restart in 2014, WCM AG has focused on an extensive network for the acquisition of properties as well as on value-creating asset management, in order to generate attractive long-term rental income and a steady cash flow. The portfolio has a gross asset value of around EUR 680 million. The company has extensive loss carry forwards in corporate and commercial tax. The shares of WCM AG are listed in the Prime Standard of Deutsche Börse and included in indices such as SDAX, FTSE EPRA NAREIT Developed Europe, CDAX and DIMAX.

Contact:

Gunnar Janssen
Investor Relations

WCM Beteiligungs- und Grundbesitz-AG
Bleichstr. 64-66
60313 Frankfurt am Main

Telephone +49 69 963 7319 10
Email [email protected]

www.wcm.de