VIB Vermögen AG launches open-ended real estate special fund with a volume of EUR 350 million – VIB Group intends to sell a portfolio with a total of 31 portfolio properties

Press release

Publication of inside information pursuant to Art. 17 of Regulation (EU) No. 596/2014
(Market Abuse Regulation)

VIB Vermögen AG launches open-ended real estate special fund with a volume of EUR 350 million – VIB Group intends to sell a portfolio with a total of 31 portfolio properties

VIB Vermögen AG, Tilly-Park 1, 86633 Neuburg/Donau (Germany), December 20, 2022

VIB Vermögen AG (“VIB”), Neuburg/Donau (ISIN: DE000A2YPDD0), is launching an open-ended special real estate fund VIB Retail Balance I (“Fund“) with a volume of EUR 350 million and an investment focus on food retail properties and specialist retail centers, and today decided to sell seven commercial properties from VIB’s existing portfolio to the Fund. A further 24 commercial properties are to be sold to the fund from the existing portfolio of its subsidiary BBI Bürgerliches Brauhaus Immobilien Aktiengesellschaft (“BBI“).

The fund’s total equity amounts to EUR 202 million. 49% of the fund’s equity is initially provided by VIB itself. The fund will be managed by IntReal Real Estate Kapitalverwaltungsgesellschaft mbH. The fund is expected to have a term of 10 years, with a target distribution yield of 4.9% p.a.. The real estate portfolio, which VIB will sell to the fund together with BBI, consists of local shopping centers, supermarkets and specialist stores in nine federal states.

The purchase price for the seven commercial properties of VIB will amount to around EUR 119 million and the purchase price for the 24 commercial properties from BBI’s portfolio to around EUR 189 million. The total transaction will lead to a disposal of annualized net rental income of around EUR 18 million from VIB Vermögen AG Group’s (“VIB Group“) (consolidated) income statement; this is offset by an expected income for VIB Group from the transaction of around EUR 65.6 million, of which around EUR 3 million will be received this year and the remainder in 2023. The VIB Group will take over the property management and thus generate ongoing management fees of an estimated EUR 1.2 million per year. With the sale of the properties by VIB Group, the VIB Group’s portfolio will be focused on the asset class logistics and light industry.

The purchase agreement for the sale of the real estate portfolio is to be notarized shortly. The execution of the purchase agreement is subject to the condition precedent of merger control clearance.

The Managing Board of VIB Vermögen AG

Contact
VIB Vermögen AG
Investor Relations:
Tilly Park 1
86633 Neuburg/Danube (Germany)
Tel.: + 49 (0)8431 9077-961
Fax: + 49 (0)8431 9077-1961
E-mail: ed.ga-biv@llehcs-sednal.ajna

Important note
This publication constitutes neither an offer to sell nor a solicitation to buy securities.

Insofar as this publication contains forward-looking statements, these do not represent facts and are identified by the words “will”, “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” and similar formulations. These statements express intentions, views or current expectations and assumptions of the VIB Vermögen AG and the persons acting jointly with it. The forward-looking statements are based on current plans, estimates and forecasts which the VIB Vermögen AG and the persons acting jointly with it have made to the best of their knowledge, but do not make any statement about their future correctness. Forward-looking statements are subject to risks and uncertainties that are mostly difficult to predict and are usually not within the sphere of influence of the VIB Vermögen AG or the persons acting jointly with it. It should be taken into account that the actual results or consequences may differ significantly from those stated or contained in the forward-looking statements. The VIB Vermögen AG does not assume any obligation to update such forward-looking statements or to adjust them to future events or developments.