• Agreement in principle regarding envisaged acquisition of 3,500 units in the NRW core region attested
• LEG is well on track to exceed the forecast for the acquisition of at least 5,000 units in 2015
• Launch of capital increase with immediate effect of 1,196,344 new shares (2.1% of the currently outstanding share capital) ensures financial flexibility for additional acquisitions
• Including the planned capital increase, the transaction will increase FFO per share while remaining neutral for NAV per share after the transfer of ownership
• The financial guidance for the 2015 and 2016 financial years will be updated after conclusion of both the acquisition and the latest refinancing

Dusseldorf, 23 June 2015 – LEG Immobilien AG (LEG) today attested an agreement in principle regarding the envisaged acquisition of a portfolio of approximately 3,500 residential units in NRW. The acquired residential units, with the top two locations making up around 60%, represent an ideal addition to LEG's existing portfolio. The portfolio as a whole is distinguished by a significantly above-average technical condition. The portfolio's purchase price is EUR 225 million; its annual net rent is currently around EUR 14.2 million. The average in-place rent of EUR 5.22 per sqm is lower than the market rent, and the vacancy rate is currently 3.6%. Due to the good condition of the buildings and the attractiveness of the locations, further considerable improvement of the key operating figures is expected. 

For the partial financing of the acquisition, LEG resolved to issue 1,196,344 new shares excluding shareholder pre-emption rights (2.1% of the currently outstanding share capital), which are to be placed with institutional investors in an accelerated bookbuild offering. The shares will be offered to institutional and qualified investors by way of an exempt private placement in Germany and elsewhere outside the U.S. pursuant to Regulation S of the U.S. Securities Act of 1933, as amended. The offering has been launched with immediate effect and is expected to end before markets open tomorrow, subject to acceleration or extension. The results of the placement will be announced as soon as possible upon completion of the accelerated bookbuild offering. COMMERZBANK and Kempen & Co are acting as Joint Bookrunners for the capital increase.

With this tailor-made financing structure, LEG is again demonstrating efficient capital allocation as a basis for a value enhancing growth strategy. The capital increase shall safeguard the strong financial position and the financial flexibility for the continuation of the acquisition strategy. 

The transaction structure meets LEG's strict acquisition criteria. On the basis of the attractive synergies with the existing portfolio, an EBITDA margin well above the current LEG average can be expected. The transfer of ownership scheduled in October 2015 is therefore expected to increase FFO while remaining neutral for NAV per share. 

“The acquisition shows once again that LEG is decisively taking opportunities for value enhancing growth. Thanks to the strong regional presence and high level of synergy, this transaction will create directly visible added value for the shareholders. In light of the current pipeline, we assume that we will again exceed our acquisition target of at least 5,000 units in 2015,” said CEO Thomas Hegel. 

The FFO guidance for the 2015 and 2016 financial years will be updated after notarisation of the acquisition and conclusion of the latest refinancing.

Investor relations contact:

Burkhard Sawazki

Tel. +49 211 45 68-204,
Email: burkhard.sawazki[at]­leg-wohnen.de

Press contact:

Marion Eisenblätter

Tel. +49 211 45 68-325,
Email: marion.eisenblaetter[at]­leg-wohnen.de

About LEG

With around 110,000 rental properties and approximately 300,000 tenants, LEG is one of Germany's leading housing companies. It has a comprehensive presence in North Rhine-Westphalia with ten branches, 23 customer centres and approximately 100 tenant offices providing personal local services. LEG generated rental and letting income of around EUR 577 million in the 2014 financial year.