2nd Jul 2007 07:00
Wichford plc02 July 2007 2 July 2007 Wichford PLC ("Wichford" or the "Company") Wichford acquires €150,000,000 German Office Portfolio Company delivering on European strategy Portfolio produces • 7.6m pa Wichford PLC (AIM:WICH), the property investment company, has agreed to buy anapproximately 95% stake in a 42,121.5 sq m German Office Portfolio for€149,500,000 with the vendors retaining the balance. The buildings within theportfolio are located in Berlin, Stuttgart, Cologne and Dresden. All the properties are let to VBG, an institution of public law which iseffectively an agency of the Federal German Government with responsibility forsecuring working environments and the provision of occupational accidentinsurance. The leases have a weighted average unexpired term of over 16 years.All are linked to the annual German CPI, which is expected to rise by 2.3% in2007. The portfolio produces • 7,646,699 pa or 5 % yield on cost. As part of the transaction Wichford assumed the vendor's existing debt of€127,600,000 fixed at 3.51% plus margin of 1.1% for a further 3 years. This is1.1% below the current cost of 3 year money. This transaction follows Wichford's purchase of the Justice Centre in Halle,Germany (announced 15 May 2007) and the company's successful fund-raising worth£75m in February 2007. Berlin This office is situated in Markgrafenpark, a new town centre development, closeto the city centre of Berlin at the intersection of Kochstrasse andMarkgrafenstrasse, near Checkpoint Charlie. The property is let to VBG for 17years from 1st January 2006 expiring 1st January 2023. The net rental income is€1,399,131 per annum representing €232 per sq m. The property comprises a netinternal area of 6,025 sq m. Cologne This office is located in Berglisch Gladbach, 15 kms to the west of Cologne towncentre. The property is in a predominantly office-occupied block and there is aprime pedestrianised shopping area is approximately 500 metres away. The property is let to VBG for 15 years from the 1st April 2005 expiring 1stApril 2020. The net rental income is €1,008,122 per annum representing €122 persq m. The property comprises a net internal area of 8,240 sq m. Stuttgart This office is located in Ludswigberg, 15 km to the north of Stuttgart towncentre. The subject property is situated at the intersection ofMartin-Luther-Strasse and Brenzstrasse in the city centre with the main trainstation being located 200 metres to the east of the property. The property is let to VBG for 20 years from 1st January 2005 expiring 1stJanuary 2025. The net rental income is €2,144,958 per annum representing €172per sq m. The property comprises a net internal area of 12,454.5 sq m. Dresden This office is located within Dresden city centre at Wiener Platz, the city'sprime office location. Prager Strasse - the prime pedestrianised shopping area -is located in the immediate vicinity and the main train station only 200 metresaway. 90% of the property is let to VBG for 20 years from 1st April 2004 expiring 1stApril 2024. 10% is let to a local retail operator until 2009. The net rental is€2,743,228 per annum representing €178 per sq m. The property comprises a netinternal area of 15,402 sq m. Michael Sheehan, Chairman of Wichford, commented today: "I am delighted to be able to announce these acquisitions today which reflectthe company's commitment, following February's successful placing, to purchasingblue-chip properties throughout Europe. Together with the purchase in Halle announced in May, we have now committed€206m to the German market on good length leases and our rental income streamsubject to indexation has now been raised from 28% at the March interims to some41% today. These purchases demonstrate that Wichford is not only able to identifyhigh-quality investment opportunities which will provide consistent and steadyreturns to shareholders, but also that the company is delivering on our statedstrategy." Enquiries: Wichford PLCRichard Britten-Long Tel: 020 7016 6150Philip Cooper Tel: 020 7495 7111 Citigate Dewe Rogerson Tel: 020 7638 9571George CazenoveHannah Seward Notes to Editors Wichford PLC (AIM:WICH) is a property investment company, with a portfoliomostly focused on UK investment property outside Central London occupiedexclusively by UK Central Government bodies. Following the purchase of a justicecentre in Halle, Germany (announced 15 May 2007) and today's acquisitions, theCompany now also has similar assets in Continental Europe. Including today's purchases, the Company currently owns 75 properties with agross asset value of circa £690 million generating a rental income of circa£39.5 million per annum. The company's portfolio of properties has unit valuesusually between £2 million and £25 million. The Company's current core portfoliohas a weighted average unexpired lease term of circa 11 years. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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