\ BUWOG AG: Hamburg to become third development location
Company News: Page (1) of 1 - 05/02/16

BUWOG AG: Hamburg to become third development location

May 02, 2016 --


DGAP-News: BUWOG AG / Key word(s): Real Estate/Acquisition2016-05-02 / 08:50The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------- Purchase of an approximately 42,700 sqm land site in Hamburg-Bergedorffor residential project with over 1,000 units is the launch of developmentactivities in Germany's second largest city- BUWOG's development project pipeline volume increases to approx. EUR 2.5billionAs was announced ad hoc last Saturday, BUWOG Group has signed the purchaseagreement for an approximately 42,700 sqm land site in Hamburg-Bergedorf.This not only consolidates the Property Development division, which isresponsible for the planning and construction of new residential units, butexpands it to include the location of Hamburg in addition to Vienna andBerlin, where BUWOG has long operated as a successful developer. BUWOGGroup's strategy for Hamburg is oriented toward growth and sustainability."For BUWOG, Hamburg is the ideal location for expanding our activities inproperty development. This step in a new German "big seven" city wasplanned by our teams long ago, and the project in Bergedorf has the exactsignificant size we have been aiming for to enter the Hamburg developmentmarket with an important residential project", says BUWOG CEO Daniel Riedl."Our focus in Property Development  now lies on the multimillion-inhabitantcities of Vienna, Berlin and Hamburg, three of the strongest cities in theGerman-speaking regions in terms of economy and growth. This land purchaseincreases the volume of our project pipeline to around EUR 2.5 billion. Inaddition to the attractive socio-demographic prospects, the choice ofHamburg as a new development location was also made as a result of theoutstanding market expertise and contacts in the Hanseatic city which BUWOGhas acquired through its previous Hamburg-related activities, particularlyin Asset Management, administration and in sales", according to Riedl.In Hamburg BUWOG is already able to rely on local structures, as thecompany already has a subsidiary there. Following acquisition of the DGAGportfolio in 2014, BUWOG Group had around 2,900 units in Hamburg'ssurrounding areas, for instance in the cities of Norderstedt and Glinde.Then at the beginning of the year BUWOG acquired a portfolio of 245 unitsdirectly in the city of Hamburg (district of Hamburg-Harburg), and inproperty administration for third parties BUWOG has also been active inHamburg for quite some time. In addition to the current local team, now thecompany is also establishing a new Hamburg development unit to also acquireand carry out further development projects in the Hanseatic city.Based on the current status of planning, the first Hamburg residentialproject involves a quarter featuring over 1,000 units. The estimated totalinvestment costs for this come to around EUR 430 million. After obtainingthe right to build, BUWOG estimates a construction period of around fiveyears until completion of the new city quarter.The premises purchased is part of the "Schleusengraben" development area.It is named after a canal which runs along the property and links the Billeand Elbe rivers. The property is situated very centrally in the Hamburgdistrict of Bergedorf - the centre is only about 300 metres away. Therailway station with the S-Bahn commuter and regional rail connections islocated in close proximity to the property. In Hamburg's overall momentumof growth and influx, the city is looking increasingly toward the east; the "Bergedorf axis" with its dynamic development projects and significantpotential for space is benefiting enormously from this."Bergedorf is planning a mixed urban quarter at this location. As a partnerto Bergedorf, BUWOG will build primarily flats to own and to rent here.With the rental units for BUWOG Group's own portfolio, we ourselves ensurethe investment portfolio's growth and are providing rental space, which isalso so urgently needed in steadily growing Hamburg", Alexander Happ,Managing Director Property Development Germany of BUWOG Group, says withrespect to further plans in Hamburg-Bergedorf.The construction of rental flats in the portfolio is also being increasedin development in Berlin. "A central aspect of our planning in Bergedorf isto develop an energy-efficient and sustainable, showcase quarter - styledentirely on the basis of our projects in Vienna and Berlin",  according toHapp."This important step in growth is another building block in the strategy tostrengthen BUWOG as an integrated property owner and residential propertydeveloper for the future and to increase shareholder value. As a result,BUWOG will become even more interesting for the capital market", saysdeputy CEO and CFO Andreas Segal.About BUWOG GroupBUWOG Group is the leading German-Austrian full-service provider in theresidential property business and now looks back on 65 years of expertise.Its property portfolio encompasses approximately 51,300 units and isdistributed evenly throughout Austria and Germany. In addition to AssetManagement, the entire value chain of the residential sector is covered byProperty Sales and Property Development. The shares of BUWOG AG have beenlisted on the Frankfurt, Vienna and Warsaw stock exchanges since the end ofApril 2014.BUWOG has been carrying out its own development projects since itsestablishment in 1951. As a partner in the Austrian klima:aktiv pakt 2020,BUWOG Group is a pioneer in sustainable and energy-efficient constructionand refurbishment. With award winning projects such as Oase22, Am Mühlgrundand the Kierling passive house, as a developer BUWOG also consistentlypursues this approach with its developments in Berlin, for instance withthe large-scale "52 Grad Nord" project, where a separate local heatingnetwork featuring a combined heat and power supply and a primary energyfactor of 0 is being built for more than 700 units.For further information, please contact:Media Inquiries Germany:         Investor Relations:Peter Dietze-Felberg             Holger LüthRUECKERCONSULT                   BUWOG AGT: +49 (0) 30 2844 987 - 62      T: +43 (0) 1 87828 [email protected]         [email protected] Inquiries Austria:Thomas BreyM&B PR, Marketing, PublikationenT +43 (0) 1 233 01 23 15M +43 676 542 39 [email protected]--------------------------2016-05-02 Dissemination of a Corporate News, transmitted by DGAP - aservice of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------------   Language:    English                                                       Company:     BUWOG AG                                                                   Hietzinger Kai 131                                                         1130 Wien                                                                  Austria                                                       Phone:       +43 1 87 8281130                                              Fax:         +43 1 87 8285299                                              E-mail:      [email protected]                                            Internet:    www.buwog.com                                                 ISIN:        AT00BUWOG001                                                  WKN:         A1XDYU                                                        Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated                  Unofficial Market in Dusseldorf, Munich, Stuttgart,                        Tradegate Exchange; Wien (Amtlicher Handel / Official                      Market)                                                             End of News    DGAP News Service  
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