Godewind Immobilien AG refinanced Frankfurt Airport Center building after successful optimization
- Redemption-free loan agreement for a total of EUR 130 million signed
- 6 year term; 1.2 percent interest rate per year
- Replacement of original loan agreement with short remaining maturity
Frankfurt am Main, 7 January 2020 - Godewind Immobilien AG (ISIN: DE000A2G8XX3, ticker symbol: GWD, Godewind), a company specialising in German office properties, has signed a redemption-free loan agreement for a total of EUR 130 million and a 6 year term at 1.2 percent interest rate per year for the Frankfurt Airport Center (FAC). With this loan, in particular, the original financing arrangement with a volume of EUR 92.1 million, remaining short term maturity and 1.87 percent interest rate per year was replaced. The annual interest expenses will be reduced by around EUR 0.15 million despite the higher loan volume. The increase in loan volume was possible due to the vacancy reduction from around 18 percent originally to currently 3.8 percent. This vacancy reduction has a positive impact on the valuation of the FAC, which was shown at EUR 217.5 million in the balance sheet as per 30 September 2019. The FAC was acquired in December 2018 at a purchase price of around EUR 168 million. By optimizing the financing, the company continues to successfully implement the 'value-add/manage-to-core' strategy.
Attractive financing costs
With the new loan agreement for the FAC, the average interest rate of all existing bank loans in the portfolio, totalling EUR 499.2 million, will decline from an average of 1.42 percent to 1.21 percent. The asset based LTV declines to 45 percent and the Net LTV falls to 43 percent. The average duration of all existing loan agreements extends to around 5 years after 4 years previously. Thus, this transaction is not only strengthening the financial and earnings position and Godewind's ability to pay dividends but also generates new funds for further organic growth.
Godewind will continue to optimize the existing office portfolio with a value of more than EUR 1 billion as per 30 September 2019 and expand the office-portfolio. With a lettable vacancy rate of currently around 9.5 percent the portfolio still has extensive organic growth potential.
About Godewind Immobilien AG
Godewind Immobilien AG, headquartered in Frankfurt am Main, is a company specialising in German office properties. The company's focus is on creating and expanding an attractive real estate portfolio in Germany's growth centres. As an active portfolio and asset manager, Godewind strives for sustainable increases in earnings and income, which are supplemented by regularly increasing upside potential. Godewind currently has an office property portfolio totalling more than EUR 1 billion. In the medium term, the aim is to create a commercial real estate portfolio of at least EUR 3 billion with the help of a wide-ranging network and by means of value-added acquisitions.
Based on internal portfolio and asset management, Godewind Immobilien AG will manage commercial properties cost effectively, conclude long-term tenancy agreements and thus increase the value of the company. The company has loss carryforwards for corporation and trade tax and a tax deposit account. The Godewind Immobilien AG share is listed at the highest transparency level of Deutsche Börse AG, Prime Standard, and is traded amongst others in the XETRA market segment of the Frankfurt Stock Exchange (FWB).
For further information please visit https://www.godewind-ag.com.
Contact Details
Investor Relations Contact
Gunnar Janssen
Godewind Immobilien AG
Phone +49 69 27 13 97 32 13
E-mail [email protected]
Press Contact
Jan Hutterer
Kirchhoff Consult AG
Phone +49 40 60 91 86 65
E-mail [email protected]
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