DGAP-Adhoc: Instone Real Estate Group AG: Strategic Business Acquisition

Instone Real Estate Group AG: Strategic Business Acquisition

Essen, 15 August 2019. Today, Instone Real Estate Group AG ("Instone" or "Company"), has entered into a definitive agreement to acquire the residential property development activities bundled in S&P Stadtbau of Sontowski & Partner Group ("S&P").

S&P Stadtbau is a real estate project developer active in the Northern Bavarian region, which realizes complex residential real estate projects along the entire value chain.

Through the acquisition, Instone expands its platform to a strategically important region not previously covered and adds an experienced management team with first-class development expertise. Going forward, more than 20 employees based in Erlangen will be added to the Instone platform. The integration into the Instone Group is scheduled for the third quarter of 2019.

The transaction includes existing project developments with a total of around 1000 projected residential units and a total volume of expected revenues of around EUR 300 million in the next few years. The agreed purchase price for all of the outstanding equity and debt as well as including all transaction costs amounts to approximately EUR 74 million. The agreement with the seller includes potential earn-out payments for identified projects with a total sales volume of a further EUR 250 million, provided the projects will be acquired by Instone within seven months after closing of the transaction.

On the back of the transaction, the Management Board releases first time guidance for revenues for the fiscal year 2022 with adjusted group revenues* expected to exceed EUR 1 billion.

The acquisition of S&P Stadtbau represents Instone's first strategic acquisition since going public in February last year and forms the basis for additional growth in the Northern Bavarian region, which the Management Board believes will become even more attractive in the coming years.

* The definitions of alternative performance measures mentioned in the notification can be found in the glossary on the company's website under http://ir.de.instone.de/websites/instonereal/English/3400/glossary.html .

Contact details

Instone Real Estate Group AG
Investor Relations
Thomas Eisenlohr
Grugaplatz 2-4
45131 Essen
Tel.: +49 (0)201 45355-365
Fax: +49 (0)201 45355-904
E-Mail: thomas.eisenlohr@instone.de