Financial news

DGAP-Adhoc: Noratis AG sells property portfolio in Dormagen (english)

14/09/2017 - 15:09


    Noratis AG sells property portfolio in Dormagen

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DGAP-Ad-hoc: Noratis AG / Key word(s): Disposal/Real Estate
Noratis AG sells property portfolio in Dormagen

14-Sep-2017 / 15:09 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by
DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Public disclosure of inside information in accordance with Article 17 MAR

Noratis AG sells property portfolio in Dormagen

Eschborn, 14 September 2017 - Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK,
"Noratis") today announced that it has signed a notarised agreement for the
sale of 221 apartments in Dortmagen to an institutional investor by way of a
block sale. The sold portfolio also includes 151 garages and 56 parking
spaces. The purchase price is in the low double-digit million euro range.
Closing the transaction was the final important milestone required for
Noratis to achieve its revenue and earnings targets in fiscal year 2017.

After the successful sale of the portfolio and the positive course of
business during the year, Noratis will also issue a guidance for the current
fiscal year with the publication of its half-year figures scheduled for the
end of September 2017.


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Information and Explanation of the Issuer to this News:

In autumn 2015, Noratis AG had acquired a package of properties in Dormagen
comprising 755 apartments, 7 commercial units as well as 243 garages and 155
parking spaces. The primary challenge faced by Noratis was a large
maintenance backlog and the resulting vacancy rate of around 30 percent.
Within less than two years, Noratis has completely refurbished and let far
more than 200 apartments so that the vacancy rate now is down to almost
zero. Work on the properties included repairing concrete and renovating
facades, and painting staircases and basements. Extensive repairs were also
carried out and parts of the electrical and piping installations were
replaced. These measures not only significantly enhanced the living quality
in the renovated buildings but also gave a substantial boost to the
streetscape of the Dormagen district of Horrem.

Following two previously completed block sales, Noratis now has disposed of
the largest portion of its holdings in Dormagen. The company still owns 88
apartments, which have been put on the market individually since May. About
a quarter of the apartments have already been sold.

Igor Christian Bugarski, CEO of Noratis, explains the sale: 'The property
portfolio in Dormagen was the largest to date in the history of Noratis. I
am delighted that due to the great dedication of our asset managers and
engineers we were able to significantly exceed all of the targets we set
ourselves when we bought the properties - both in terms of schedule and
financials. The development of the district has benefited tenants,
retailers, tradesmen and the city of Dormagen.

We believe that our Dormagen project is further validation of our successful
business policy, and our plan is to re-invest the cash inflow in attractive
residential portfolios with potential for appreciation very soon.'

Noratis AG ( www.noratis.de), located in Eschborn near Frankfurt, is a
dynamically growing portfolio developer of residential real estate. The
company purchases properties with development potential across Germany,
mostly employee dwellings and housing estates built from the 1950s to 1970s
in cities with more than 10,000 inhabitants or on the outskirts of
conurbations. After acquisition, Noratis significantly enhances the value of
the properties and subsequently sells them in block sales or individually as
condominiums. This strategy enables Noratis to conserve and offer affordable
housing for tenants with medium and small incomes. Since 2014 alone, Noratis
has successfully completed 15 projects comprising more than 1,500
residential units. The company generated revenues of EUR 44.6 million in
fiscal year 2016 and has grown at an annual average of 63% since 2014.

Investor relations contact:

edicto GmbH
Axel Mühlhaus/ Dr. Sönke Knop
Eschersheimer Landstrasse 42
60322 Frankfurt
Phone: +49 69 905505-52
E-mail: noratis@edicto.de


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14-Sep-2017 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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   Language:    English
   Company:     Noratis AG
                Hauptstraße 129
                65760 Eschborn
                Germany
   Phone:       +49 (0) 69 / 170 77 68 20
   E-mail:      info@noratis.de
   Internet:    www.noratis.de
   ISIN:        DE000A2E4MK4
   WKN:         A2E4MK
   Listed:      Regulated Unofficial Market in Berlin, Dusseldorf,
                Hamburg, Munich, Stuttgart, Tradegate Exchange; Open
                Market (Scale) in Frankfurt



   End of Announcement    DGAP News Service
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609787 14-Sep-2017 CET/CEST

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