DGAP-News: Adler Real Estate AG

ADLER Real Estate AG: Privatisation platform

ACCENTRO Real Estate AG sold

- Future focus on letting business

- Successful monetisation of a strategic investment crystalizing profit

- Scope for further growth and redemption of liabilities

- Support of financial policy to reduce LTV to below 55 % and obtain Investment Grade Rating

Berlin, 20 October 2017 - ADLER Real Estate AG today entered into an agreement to sell a stake of c. 80 % of the shares in ACCENTRO Real Estate AG and c. 92 % of the convertibles 2014/2019 issued by ACCENTRO Real Estate AG at a total price of c. EUR 180 million to a partnership advised by Vestigo Capital Advisors LLP, a FCA authorized and regulated entity. On a fully diluted basis, the sold shares and convertibles represent a c. 82% stake in ACCENTRO Real Estate AG. The sale is structured with a first down payment by the buyer at signing, followed by successive tranches of the purchase price (including interest) to be paid over the next 13 months with appropriate security interests in place. In addition, ADLER Real Estate AG has the option to sell a further holding of up to 6% in ACCENTRO Real Estate AG to the partnership advised by Vestigo Capital Advisors LLP at the same price per share.

"We have taken a decisive step towards simplifying and concentrating on our core business model," said Arndt Krienen, CEO of ADLER Real Estate AG. "We will no longer be conducting trading activities, but will instead, concentrate on our core business of lettings, i.e. on providing tenants with a supply of housing, primarily in the affordable segment, that is in line with the market and attractive in terms of quality."

ADLER had acquired the holdings for a total consideration of c. EUR 108 million. After the successful restructuring by ADLER, ACCENTRO has been a very successful strategic investment which will have delivered a contribution to equity of more than EUR 70 million over a three year period.

ADLER intends to use the proceeds from the sale to further grow its real estate portfolio and/or for the redemption of existing liabilities in line with strategy to improve its Capital Structure. On this, Krienen said: "We are therefore giving ourselves further scope to achieve our key goals, namely further growth of our asset base and the consolidation of our finances. As the sale will also strengthen the equity base of ADLER Real Estate AG by around EUR 45 million and will thus support our financial policy, in particular to reduce LTV to below 55 % and targeting to obtain an investment grade rating. This in turn will significantly improve the conditions for our future financing."

The closing of the transaction is scheduled for the end of November at the latest. The closing of the acquisition is expected to trigger a mandatory takeover offer for all shares of ACCENTRO pursuant to the German Securities Acquisition and Takeover Law, unless the buyer launches a qualifying voluntary tender offer for all shares of ACCENTRO.

For enquiries, please contact:

Dr Rolf-Dieter Grass
Head of Corporate Communication
ADLER Real Estate AG
Telephone: +49 (30) 2000 914 29
r.grass@adler-ag.com