PATRIZIA Immobilien AG: Acquisition of another office portfolio in Hessen and positive forecast

Augsburg (pta005/14.02.2014/07:30 UTC+1) Key points

- "Leo I" purchase agreement signed
- Further progress in sales from own investment and debt reduction
- Sound starting basis for 2014 forecast: operating result of at least EUR 50 million
- Increase in assets under management to around EUR 13 billion

PATRIZIA Immobilien AG has signed the contract to purchase a commercial real estate portfolio in Hessen. The "Leo I" portfolio comprises a total of 18 office buildings which are leased to the federal state of Hessen on a long-term basis. It includes the building housing Hessen's Ministry of Finance and also the police headquarters in Frankfurt am Main. The overall portfolio has a market value of around EUR 1 billion and is being sold by a subsidiary of Commerz Real AG. PATRIZIA is acquiring the portfolio via a special real estate fund.

PATRIZIA acquired a similar office portfolio with 36 office properties in Hessen ("Leo II") back in autumn 2013. This was Germany's largest commercial real estate transaction of 2013. After the acquisition of the Deikon portfolio and "Leo II", the latest purchase of the "Leo I" portfolio means that for the third time within a few months, PATRIZIA has proved it can also successfully conclude major, non-standardised real estate transactions within a short time. With its acquisition of the "Leo I" portfolio, the business unit "Alternative Investments", which was established in April 2011, has already successfully completed five transactions in the office, retail and residential real estate sector with a total volume of more than EUR 6 billion. PATRIZIA has attracted more than EUR 2.8 billion in institutional equity in this connection.

At the same time, PATRIZIA has made further progress both with its planned sale of own investment and also with its endeavours to reduce debt by 2015. In 2013, PATRIZIA was again able to reduce its own portfolio by around 1,700 units. Debt including two bonded loans was reduced to approximately EUR 380 million. The economic transfer and the associated pro-rata loan repayment of block sales with a sales volume of EUR 42.1 million that were notarised in the fourth quarter of 2013 will be largely completed in the first quarter of 2014. Debt will have fallen below EUR 350 million as of the beginning of February 2014. And including this deal, assets under management have been increased to around EUR 13 billion.

The Management Board believes that business performance in 2013 and during the first few weeks of 2014 creates a sound starting basis for achieving the target operating result of at least EUR 50 million in the 2014 fiscal year.

The Management Board

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Emitter:	PATRIZIA Immobilien AG Fuggerstraße 26 86150 Augsburg Germany
Contact Person:	Verena Schopp de Alvarenga
Phone:	+49 821 50910-351
E-Mail:	investor.relations@patrizia.ag
Website:	www.patrizia.ag
ISIN(s):	DE000PAT1AG3 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Munich, Stuttgart