HAMBORNER REIT AG achieves key letting success and secures City of Mainz as new tenant for manage-to-core property

PRESS RELEASE

HAMBORNER REIT AG achieves key letting success and secures City of Mainz as new tenant for manage-to-core property

Duisburg, 24 April 2023 – Following on from its highly successful letting operations in the 2022 financial year, HAMBORNER REIT AG has achieved another major success with a follow-on lease for the entire property in Mainz.

The asset is an office property at the established Mainz-Kisselberg location, which HAMBORNER acquired in 2021 in conjunction with its manage-to-core approach.

The property has a rental area of around 7,750 m² and was fully let to a single tenant so far. The lease, which was originally due to end in the spring of 2024, was dissolved early after the City of Mainz was secured as a new tenant of good credit standing.

In conjunction with re-letting activities, a revised utilisation concept was prepared in close cooperation with the City of Mainz to earmark the future use of the property as accommodation for refugees. The necessary conversion and modernisation work will be carried out in the coming months in coordination with the local councils and authorities.

The open-ended lease stipulates standard terms and conditions and – owing to the current legal restrictions on refugee accommodation – an extraordinary right of termination on the part of the tenant as at 31 December 2027. In the event of the legal regulations changing and the special right of termination not being exercised, the partners intend to continue their cooperation beyond 2027. The contract includes green lease clauses that ensure, for instance, that the property will be supplied with renewable energies.

The early signing of the follow-on lease is already reflected in the development of the property’s market value. Based on latest external portfolio valuation, the property was appraised at a value of around 21.5% above the original purchase price.

“The signing of the lease demonstrates the expertise and market proximity of our asset management as well as our strategic approach of leveraging additional potential for value added with active investment in manage-to-core properties. At the same time, the agreement of green lease components forms the basis for the joint sustainable use and management of the property and for transparent data sharing. The long-term follow-on lease that will create accommodation for around 480 refugees is a total success, not just from a economic perspective but socially as well,” says Sarah Verheyen, member of the Management Board of HAMBORNER REIT AG.

ABOUT HAMBORNER REIT AG

HAMBORNER REIT AG a public company listed in the SDAX that operates exclusively in the property sector and is positioned as a portfolio holder for high-yield commercial properties. The company generates sustainable rental income on the basis of a diversified portfolio of properties distributed throughout Germany with a total value of around €1.6 billion. The portfolio focuses on modern office properties at established locations as well as attractive local supply properties as large-scale retail assets, retail parks and DIY stores in central inner-city locations, district centres and highly frequented edge-of-town sites of major German cities and mid-sized centres.

HAMBORNER REIT AG is distinguished by its many years of experience on the property and capital market, its consistent and sustainably attractive dividend strategy and its lean and transparent corporate structure. The company is a registered real estate investment trust (REIT) and benefits from corporation and trade tax exemption at company level.

CONTACT

Christoph Heitmann
Head of Investor & Public Relations
Tel.: +49 (0)203 54405-32
Mail: c.heitmann@hamborner.de
Web: www.hamborner.de