DGAP-News: Consus Real Estate AG signs forward sale agreement for EUR241m, achieves development milestones in Frankfurt and Leipzig and breaks ground for prefabrication factory

Consus signs forward sale agreement for EUR241m, achieves development milestones in Frankfurt and Leipzig and breaks ground for prefabrication factory

Berlin, 15 November 2018 - Consus Real Estate AG ("Consus", ISIN DE000A2DA414) announces the signing of a forward sale for CG's 'quartier' development project 'Cologneo I' in Cologne to a well-known institutional investor for EUR241m. Furthermore, Consus Group achieves major development milestones for project and 'quartier' developments with a gross development volume (GDV) of EUR430m that have already been largely forward sold to institutional investors. In addition, Consus Group celebrated the ground-breaking ceremony for the EMC concrete prefabrication factory producing construction elements in partnership for up to 2,000 residential units per year.

Successful forward sale in Cologne with additional margin upside

The forward sales agreement for one of Consus' largest development projects has successfully been signed. A well-known institutional investor has acquired the 'Cologneo I' quartier development for an expected EUR241m with an additional upside of up to EUR36m (+15%) if rents above current market rent will be achieved. The recently started construction works will finish by 2022. The total GDV for the project amounts to c. EUR380m and has a net floor area of 90,000 sqm. With the signing of the agreement, 62% of the project has been contractually secured. The remaining part of the 'quartier' development is in advanced negotiations.

Successful ground-braking for Kaiserlei project between Frankfurt am Main and Offenbach

On a plot area of 36,500 sqm, the development project Kaiserlei will create a new trend-setting quartier with a modern flair for living, working and leisure activities, including a public swimming pool. Consus, through its subsidiary CG Gruppe AG, acquired the area two years ago and initiated the revitalisation. The entire Kaiserlei Quartier and its various components represent a GDV of around EUR409m. A large part of the project was placed with a well-known German pension fund at the end of 2017 as part of the VauVau transaction and by way of a forward sale for EUR218m. In the course of this year, another major section is expected to be placed with an institutional investor for c. EUR65m. The new quartier is expected to be completed by 2022. The landmarks of the development are the 19- and 22-storey office buildings, formerly part of Siemens' power plant division, which will be completely refurbished according to the vertical village concept under the VauVau Apartments brand. These will be flanked by three new 6- and 7-floor buildings. The generously designed open spaces between the buildings offer green areas and playgrounds for residents to enjoy. In addition, the 'quartier' is setting new ecological standards through 'green technology'. A large-scale geothermal system will be built directly under the construction site to supply energy.

Topping-out Ceremony in Leipzig

For the Residenz am Waldplatz in Leipzig, located at the Friedrich-Ebert-Str., Consus celebrated the completion of the construction shell with all project participants. The letting process and the completion of the construction is expected to be completed in 2019. With the strong demand for residential space and benefit for the overall layout, the commercial space was largely removed. The development has a GDV of EUR20m and has already been placed with an institutional investor as part of a forward sale.

The architects homuth + partner designed four houses alongside the street as well as two rear-facing solitaire houses with a total of 74 rental apartments with the intention to break the classic floor plans and enable living on different levels.

Consus sets new construction standards

Consus, through its subsidiary CG, is the key business partner for the European Modular Constructions GmbH (EMC) and together, celebrated the ground-breaking for one Europe's largest prefabrication factory for construction elements in Erfurt. In line with an industry 4.0 standard, the EMC factory manufactures ready-to-install wall and ceiling elements. These elements, which incorporate robot-constructed pipe system installations, will in future be directly assembled at the construction site. After its production start in 2020, the plant will produce components for c. 2,000 residential units per year.

Christoph Gröner, member of the extended management board of Consus and CEO of CG Gruppe AG, says: "Our group focuses strongly on the digitalisation of development and construction processes especially for the residential segment. Our aim is to reduce construction costs and timeframes significantly but at the same time keep quality standards at the same level. At the same we include green technology such as carbon-neutral heating for our projects such as the Kaiserlei-Quartier that results in reduced CO2 emissions by 70% thus saving tons of CO2 emissions in the future."

Andreas Steyer, CEO of Consus, adds: "Technological innovation, faster construction timelines and continuous forward sales of development projects and quartiers such as the Cologneo I, Kaiserlei and Residence in Leipzig lie at the heart of our operations and underline the strengths of our unique business model. With the development of residential space for the middle income segment, we continue to develop highly sought-after investment products".

Contact

Consus Real Estate AG
Jan-Philipp Ansorg
Corporate Finance & Investor Relations
j.-p.ansorg@consus.ag

Consus Real Estate AG

Consus Real Estate AG ("Consus") a leading German property developer with c. EUR10bn in properties under development. The focus of the Company's business activities lies on residential property in Germany's top nine economic cities. Consus specialises in the development of entire neighbourhoods ('quartiers') and standardised flats. The use of forward sales to institutional investors, the digitalisation of construction processes and industrial series production allow the Company to operate along the entire property development value chain. Consus implements projects - from the planning phase through to construction and transfer of ownership, as well as property management and the associated services - via its subsidiaries CG and SSN. Consus Real Estate AG's shares are listed in the Scale segment of Deutsche Börse AG and m:access segment of the Munich Stock Exchange and are traded on XETRA in Frankfurt, among others.