Adler Group S.A. signs contract over portfolio sale to KKR/Velero and will reach LTV target of below 50%

• Sale of c. 14,400 units at a premium on book value
• Leading global investment firm KKR and Velero acquire units in an asset deal
• Expected net cash proceeds of c. €600m

Berlin, 13 January 2022 - Adler Group S.A. ("Adler Group") today announced the signing of an agreement with KKR, a leading global investment firm, on the sale of approximately 14,400 residential and commercial units, predominantly located in medium-sized cities in eastern Germany. The transaction is structured as asset deal. The agreed purchase price corresponds to a valuation of the portfolio of €1.05 billion and thus a premium on the book value reported as of 30 September 2021 and independently appraised by CBRE.

Adler Group expects net cash proceeds from the transaction of around €600m. This corresponds to the amount stated in previous publications. With this cash inflow, Adler Group will further deliver on its objective of deleveraging its balance sheet and achieve its strategic goal of reducing the loan-to-value ratio (LTV) to below 50%.

The signed agreement corresponds to the terms of the letter of intent concluded between Adler Group and KKR/Velero at the end of October 2021. Thus, the sale above book value provides further evidence of the intrinsic value of the Adler Group portfolio.

With this transaction, Adler Group is consistently pursuing its strategy to permanently increase the value of the company in the interests of all stakeholders by accelerating the reduction of leverage as well as focusing on residential properties in Germany's large cities. Combined with the recently closed transaction with LEG Immobilien SE, the process of disposing yielding properties that are not in line with the strategy is now largely complete.

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