November 24, 2020 - The German KfW Energy Efficiency Program will be providing the partial financing for two of the current refurbishment projects of alstria (symbol: AOX, ISIN: DE000A0LD2U1).
Extensive refurbishment measures are currently in progress at the properties at Solmsstr. 27-37 (Frankfurt am Main) and Rotebühlstr. 98-100 (Stuttgart). The aim of the refurbishments, which represent an investment of EUR 69 million in the two buildings, is not only to increase the quality of the assets, but also to significantly improve energy efficiency and thus reduce CO2 footprint.
alstria continues to pursue a strategy of modernizing its portfolio properties. "The most sustainable building is the one that is never built," says Olivier Elamine, CEO of alstria. "Compared to new construction, refurbishments require significantly less resources and consequently the emission of GHG will be much lower. In this way, we make sustainable use of the existing buildings and create modern and energy-efficient assets for our tenants".
For the first time, the modernization measures are being partially financed by the KfW Banking Group under the Energy Efficiency Program. This program is intended to finance measures aimed at saving energy and reducing carbon emissions in German commercial properties.
The loan has a total volume of EUR 21.2 million, an interest rate of 1% and an average maturity of around 3.5 years. As the repayment subsidy provided by KfW is EUR 4.2 million, the redemption amount will be reduced to EUR 17.0 million.
HypoVereinsbank is a long-standing partner of alstria and provides the KfW financing as its principal bank. "We are very pleased to support alstria also in the implementation of these two projects, thus contributing to the decarbonization of its portfolio. Sustainability is also increasingly becoming the focus of our financing activities," says Dr. Christian Federspieler, Head of Real Estate Germany at HypoVereinsbank.
The refurbishments will be completed by the end of 2021 and substantial long-term leases have already been signed for both buildings.
alstria office REIT AG is the leading real-estate operator focusing solely on German office property in selected German markets. Our strategy is based on the ownership and an active management of our properties throughout their entire life cycle, strong added-value services to our customers and deep knowledge of the markets in which we operate. alstria strives for sustainable long-term value creation while taking advantage of short-term arbitrage of inefficiencies in the real estate markets. As of September 30, 2020, the portfolio comprises 110 buildings with a lettable area of 1.4 million square meters and a total portfolio value of EUR 4.4 billion.
This release constitutes neither an offer to sell nor a solicitation of an offer to buy any shares. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences.
The current COVID-19 outbreak is creating substantial uncertainty in the marketplace. Although alstria has diligently reviewed the information contained in this release it is based on its own analysis and estimate, as well as available public sources and not on active discussion with tenants. As such the current liquidity risk of the tenants can materially differ from alstria's own estimate, and the actual impact of the COVID 19 outbreak may differ substantially from the current previsions.
alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
alstria office REIT-AG
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