Adler Group: EUR 75.7m residential assets disposal at premium to book value

• Successful disposal of 1,605 units with GAV of EUR 75.7m slightly above book value
• Assets generate EUR 4.8m net rental income pa and have 17.45% vacancy rate and an average rent of 5.21 EUR/sqm/month
• Transaction is the next step in ADLER's strategy to streamline its portfolio and strengthen its balance sheet in line with ongoing deleveraging commitments
• Closing is expected at the end of March 2021

Berlin, 21 December 2020 - Adler Real Estate AG (ADLER RE), c. 95% subsidiary of Adler Group S.A. (Adler Group), entered into a binding sale and purchase agreement with OMEGA AG, Munich and a real estate family office, to dispose of 1,605 residential and commercial units with a gross asset value (GAV) of EUR 75.7m at a slight premium to book value as of Q3 2020. This transaction further demonstrates the resilience of the German residential real estate market at a time of heightened macroeconomic uncertainty. The properties are primarily located in Borna, Osterholz-Scharmbeck and Schwanewede. The units generate net rental income of EUR 4.8m pa and have a 17.45% vacancy rate which peaks at up to 27% with an average rent of 5.21 EUR/sqm/month.

The transaction is a natural next step in Adler Group's strategy to streamline its portfolio and will have a positive impact on all portfolio KPIs. LTV will be reduced by 30bps and is a further step to reach our mid-term target of around 50%. It is expected to close at the end of March 2021.

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