Publication of inside information in accordance with Article 17 MAR
Eschborn, 14 September 2017, 15:09 CET/CEST – Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK, „Noratis“) today announced that it has signed a notarised agreement for the sale of 221 apartments in Dormagen to an institutional investor by way of a block sale. The sold portfolio also includes 151 garages and 56 parking spaces. The purchase price is in the low double-digit million euro range. Closing the transaction was the final important milestone required for Noratis to achieve its revenue and earnings targets in fiscal year 2017.
After the successful sale of the portfolio and the positive course of business during the year, Noratis will also issue a guidance for the current fiscal year with the publication of its half-year figures scheduled for the end of September 2017.
— End of the ad-hoc announcement —
In autumn 2015, Noratis AG had acquired a package of properties in Dormagen comprising 755 apartments, 7 commercial units as well as 243 garages and 155 parking spaces. The primary challenge faced by Noratis was a large maintenance backlog and the resulting vacancy rate of around 30 percent. Within less than two years, Noratis has completely refurbished and let far more than 200 apartments so that the vacancy rate now is down to almost zero. Work on the properties included repairing concrete and renovating facades, and painting staircases and basements. Extensive repairs were also carried out and parts of the electrical and piping installations were replaced. These measures not only significantly enhanced the living quality in the renovated buildings but also gave a substantial boost to the streetscape of the Dormagen district of Horrem.
Following two previously completed block sales, Noratis now has disposed of the largest portion of its holdings in Dormagen. The company still owns 88 apartments, which have been put on the market individually since May. About a quarter of the apartments have already been sold.
Igor Christian Bugarski, CEO of Noratis, explains the sale: “The property portfolio in Dormagen was the largest to date in the history of Noratis. I am delighted that due to the great dedication of our asset managers and engineers we were able to significantly exceed all of the targets we set ourselves when we bought the properties – both in terms of schedule and financials. The development of the district has benefited tenants, retailers, tradesmen and the city of Dormagen.
We believe that our Dormagen project is further validation of our successful business policy, and our plan is to re-invest the cash inflow in attractive residential portfolios with potential for appreciation very soon.”
Noratis AG sells property portfolio in Dormagen
This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities. Any such offer will be made solely on the basis of the securities prospectus to be published as approved by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). The information legally required to be provided to investors is contained only in the securities prospectus. The securities prospectus is expected to be available free of charge on the internet at the website of the issuer www.noratis.de and during normal business hours at the issuer, on 19 June 2017.
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