DGAP-Adhoc: WCM Beteiligungs- und Grundbesitz-AG: WCM acquires further retail portfolio for EUR 98.2 million

Ad hoc according to Article 17 MAR

WCM acquires further retail portfolio for EUR 98.2 million

Frankfurt am Main, 11 November 2016 - WCM Beteiligungs- und Grundbesitz-AG (WCM AG, ISIN: DE000A1X3X33) further expands its asset base through the acquisition of a retail portfolio. In the federal states of BadenWuertemberg and Saxony-Anhalt three retail centres were acquired with a total rental space of 88,000 square metres for a net purchase price of EUR 98.2 million. With an EPRA vacancy rate of 7 percent the newly acquired portfolio generates annualised rental income of around EUR 7.6 million. The implied gross initial yield is 7.7 percent. Anchor tenant on all three locations is a leading food retail chain. The weighted average lease time (WALT) for the anchor tenant stands at 6.1 years, for the newly acquired portfolio at a total WALT of 5.6 years. The acquisition is planned to be financed via a combination of existing cash and mortgage lending. The Funds from Operations (FFO) amounts to around EUR 4.2 million. The closing is expected within the first quarter 2017.

Acquisition increasing EPRA NAV and FFO significantly

With this acquisition WCM increases the pro forma portfolio value to around EUR 766 million with an annualised rental income of EUR 46.0 million and an annualized FFO I of around EUR 25.5 million. The weighted average lease time (WALT) of WCM's pro forma portfolio amounts to 8.5 years with an EPRA vacancy rate of 4.7%. Including the acquisition announced by press release on 27 September 2016, which is expected to close this year and the announced acquisition today, the management of WCM expects the EPRA NAV/ share to rise to a minimum of EUR 2.85. The pro forma average cost of debt is anticipated to be below 2.0% with an average remaining maturity of over 6 years.