Press release

TLG IMMOBILIEN invests EUR 113.8 m in two off-market acquisitions of 28 retail assets

- 28 retail properties providing local supply acquired in two off-market transactions

- Properties spread across different - mainly western German (78%) - states

- Purchase price: EUR 111.5 m, total investment: EUR 113.8 m

- Total annualised in-place rent: EUR 8.1 m, total in-place rental yield: approx. 7.2%

- Total EPRA Vacancy Rate: approx. 5.8%, total WALT: 5.5 years

- Anchor tenants across all properties: Food retailer Rewe, Edeka, Kaufland and Penny

Berlin, 9 November 2017 - TLG IMMOBILIEN AG (DE000A12B8Z4) has acquired a portfolio of 27 neighbourhood shopping centres, supermarkets and discounters spread throughout Germany and a neighbourhood shopping centre in Rostock in two individual off-market transactions. The company invests a total of EUR 113.8 m in the acquisition; the purchase price amounted to EUR 111.5 m. The sellers are a private investor and an institutional fund. The transactions were brokered by Jones Lang LaSalle and Savills.

In total, these 28 retail locations generate an annualised in-place rent of around EUR 8.1 m and an in-place rental yield of around 7.2%. The weighted average lease term (WALT) of the rental agreements is 5.5 years. The vacant space currently amounting to around 5.8% will be utilised to optimise the use of space and the tenant mix. Essentially, the anchor tenants in the portfolio are REWE, EDEKA, Kaufland and Penny.

Regionally, the properties are distributed as follows by property value:

The properties have been built in different years with some having been restored or expanded only recently. All of the properties provide local supply with everyday goods in their established local catchment areas and as such represent an excellent addition to the retail portfolio of TLG IMMOBILIEN.

Photo:
Caption: "Klenow Tor" neighbourhood shopping centre, Schiffbauerring/Albrecht-Tischbein-Strasse/Taklerring, 18109 Rostock, TLG IMMOBILIEN AG
Copyright: Michael Fahrig
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About TLG IMMOBILIEN AG
TLG IMMOBILIEN AG is a listed leading commercial real estate company in Germany that has been synonymous with real estate expertise for over 25 years. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialised in commercial properties for office and retail use: it focuses on managing a high-quality portfolio mostly comprising office properties in Berlin, Frankfurt/Main, Dresden, Leipzig and Rostock. The company also has a regionally diversified portfolio of retail properties in highly frequented micro-locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not only due to their excellent locations but also because of their long-term rental or lease agreements.

As at 30 September 2017, the property value amounted to EUR 2.4 bn. As at the same reporting date, the EPRA Net Asset Value per share amounted to EUR 20.00.

This publication contains forward-looking statements based on current views and assumptions of TLG IMMOBILIEN AG's management and made to the best of knowledge. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause TLG IMMOBILIEN AG's revenues, profitability or the degree to which it performs or achieves its targets, to materially deviate from what is explicitly or implicitly stated or described in this publication. Therefore, persons who obtain possession of this publication should not rely on such forward-looking statements. TLG IMMOBILIEN AG accepts no guarantee or responsibility regarding such forward-looking statements and will not adjust them to future results or developments.