GWIK.L Regulatory News (GWIK)

1 Feb 2006 07:00

Dawnay, Day Treveria PLC01 February 2006 1 February 2006 Dawnay, Day Treveria PLC announces that it has agreed to acquire three German property portfolios and a single property for a combined total of €230 million Dawnay, Day Treveria PLC ("DTR" or "the Company"), which has been formed for thepurpose of investing in German commercial real estate with a focus on retailassets, is pleased to announce it has agreed to acquire three propertyportfolios and a single property for a combined total of €230 million. The first portfolio consists of 32 properties: 23 retail warehouses, 8 carshowrooms and one shopping centre. The majority of the retail warehouses arelocated in the former West Germany, and are predominantly concentrated aroundFrankfurt. Tenants include Wal Markt and Aldi. The car showrooms are for asingle tenant, Cloppenburg Automobil AG, which operates BMW franchises at theproperties. The shopping centre is located in the Spandau district of Berlin.Tenants include Kaufland and Toys R Us. The second portfolio is made up of four predominantly retail properties inAugsburg (Bavaria), Passau (Bavaria), Monchengladbach (North Rhine-Westphalia)and Huckeswagen (North Rhine-Westphalia). The properties are all located inprime retail locations and have a broad tenant base including general retailers,restaurants, storage facilities and a hotel. Tenants include Deichmann, DM,Stefanel, Real and Holiday Inn. The third portfolio is made up of three retail warehouses located in Fellbach,Backnang and Freiburg. Tenants include Media Markt, Mobel Roller and McDonalds. The single property is the main shopping centre on the outskirts of Zehdenick(50 km north of Berlin). The blended initial yield of the acquisitions, net of acquisition costs andirrecoverable costs, is 7.5% and the properties comprise a total lettable areaof c.201,000m2. DTR will acquire a 100% interest in the first portfolio and thesingle property and will acquire a 94.9% interest in the second and thirdportfolios. Completion of the acquisitions will take place followingsatisfaction of standard administrative conditions. DTR is acquiring the second and third portfolios from Dawnay, Day Group for anaggregate of €78.1 million by exercising its right of first refusal under itsPortfolio Management Agreement. Dawnay, Day Group agreed to acquire theseportfolios, which form part of DTR's investment pipeline, in the period betweenthe formation cut-off for DTR's Initial Portfolio and its initial publicoffering. These acquisitions are related party transactions by virtue of thefact that Peter Klimt, a director of DTR, is one of the principals of Dawnay,Day Group. In the context of these acquisitions, the directors of DTR, excludingMr Klimt, having consulted with its nominated adviser, Citigroup Global MarketsU.K. Equity Limited, consider the terms of the transactions are fair andreasonable insofar as DTR's shareholders are concerned. Ian Henderson, Chairman of DTR said: "These acquisitions are significant andtypify the type of property transactions we are seeking to complete in the next12 to 18 months. The acquisitions are in line with our strategy, have goodinvestment potential and diversified tenant bases and are part of the €1.3billion of further acquisitions referred to in the Admission Document. Withthese acquisitions the portfolio size is now approaching €900 million". DTR listed on the AIM market on 14 December 2005 and raised €408.9 million byway of an offer to institutional investors (including the exercise of theover-allotment option), together with a €35.5 million direct investment byaffiliates of the Dawnay, Day Group. The Company intends to use the fundsraised, together with debt funding, to acquire a property portfolio worth up toapproximately €2.3 billion in the 12 to 18 months following admission. Enquiries: Dawnay, Day Treveria Real Robert Goldsmith 020 7834 8060Estate Asset Management Limited www.dawnaydaytreveria.com Cardew Group Tim Robertson 020 7930 0777 Shan Shan Willenbrock Catherine Maitland This information is provided by RNS The company news service from the London Stock Exchange