AOX Alstria Office REIT AG

alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1): alstria office REIT-AG (alstria office), an internally managed Real Estate Investment Trust (REIT) solely focused on acquiring, owning and managing office real estate in Germany, announces the signature of a purchase agreement with a leading German corporation for the acquisition of a portfolio of 13 properties essentially used as office properties. Both seller and alstria agreed not to disclose the name of the seller. The assets will be acquired for an All-In cost of approximately EUR 111.3 m (EUR 1,500 per sqm) and will generate a passing rent of approximately EUR 7.7 m per annum (average of EUR 9 per sqm per month). The closing of the transaction is expected to occur in the course of 2008, and is still subject to cartel office clearance. The transaction will be financed through the existing credit facility. The properties are located all across Germany. The total lettable area is of approximately 74,500 sqm. The seller remains as a tenant in the properties and will rent approximately 66 % of the space on five to ten year leases; approximately 20.5 % is leased to third party tenants and the remaining 13.5 % is vacant allowing additional upside potential through active management. 'This transaction demonstrates the ability of alstria to offer attractive terms to German corporations willing to unlock the capital tight in their office real estate. Exit tax benefit has again allowed both parties to improve the economics demonstrating the unique competitive advantage of REITs', says Olivier Elamine, CEO of alstria. 'The acquisition of this portfolio presents a positive carry between real estate initial yields and the marginal cost of debt highlighting the ability of alstria to execute accretive deals' added Alexander Dexne, CFO of alstria, 'it will have a positive impact on our FFO and thus on our dividend for 2008.' alstria was advised by Freshfields Bruckhaus Deringer. About the company alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) solely focused on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006, its headquarters are based in Hamburg. alstria office REIT-AG owns a diversified portfolio of properties across attractive German office real estate markets. Its current portfolio comprises 70 properties with an aggregate lettable space of approximately 770,000 sqm and is valued at approximately Euro 1.6 billion. alstria intends to expand its portfolio significantly in the upcoming years as part of a sustainable growth strategy based on selective investments and active asset and portfolio management as well as on establishing and maintaining good relationships with its key customers and decision makers. For further information, please visit: www.alstria.com This release constitutes neither an offer to sell nor a solicitation of an offer to buy any securities. The securities have already been sold. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences. alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Contact Dr. Charlotte Brigitte Loos Manager Public Relations & Investor Relations Tel.: +49 - 40 - 226 341 329 Fax: +49 - 40 - 226 341 310 Email: pr@alstria.de -0- *T Language: English Issuer: alstria office REIT-AG Fuhlentwiete 12 20355 Hamburg Deutschland Phone: +49 (0)40 226 341 300 Fax: +49 (0)40 226 341 310 E-mail: info@alstria.de Internet: www.alstria.de ISIN: DE000A0LD2U1 WKN: A0LD2U Indices: SDAX, EPRA, German REIT Index Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Munchen, Stuttgart *T alstria office REIT-AG (symbol: AOX, ISIN: DE000A0LD2U1): alstria office REIT-AG (alstria office), an internally managed Real Estate Investment Trust (REIT) solely focused on acquiring, owning and managing office real estate in Germany, announces the signature of a purchase agreement with a leading German corporation for the acquisition of a portfolio of 13 properties essentially used as office properties. Both seller and alstria agreed not to disclose the name of the seller. The assets will be acquired for an All-In cost of approximately EUR 111.3 m (EUR 1,500 per sqm) and will generate a passing rent of approximately EUR 7.7 m per annum (average of EUR 9 per sqm per month). The closing of the transaction is expected to occur in the course of 2008, and is still subject to cartel office clearance. The transaction will be financed through the existing credit facility. The properties are located all across Germany. The total lettable area is of approximately 74,500 sqm. The seller remains as a tenant in the properties and will rent approximately 66 % of the space on five to ten year leases; approximately 20.5 % is leased to third party tenants and the remaining 13.5 % is vacant allowing additional upside potential through active management. 'This transaction demonstrates the ability of alstria to offer attractive terms to German corporations willing to unlock the capital tight in their office real estate. Exit tax benefit has again allowed both parties to improve the economics demonstrating the unique competitive advantage of REITs', says Olivier Elamine, CEO of alstria. 'The acquisition of this portfolio presents a positive carry between real estate initial yields and the marginal cost of debt highlighting the ability of alstria to execute accretive deals' added Alexander Dexne, CFO of alstria, 'it will have a positive impact on our FFO and thus on our dividend for 2008.' alstria was advised by Freshfields Bruckhaus Deringer. About the company alstria office REIT-AG is an internally managed Real Estate Investment Trust (REIT) solely focused on acquiring, owning and managing office real estate in Germany. alstria was founded in January 2006, its headquarters are based in Hamburg. alstria office REIT-AG owns a diversified portfolio of properties across attractive German office real estate markets. Its current portfolio comprises 70 properties with an aggregate lettable space of approximately 770,000 sqm and is valued at approximately Euro 1.6 billion. alstria intends to expand its portfolio significantly in the upcoming years as part of a sustainable growth strategy based on selective investments and active asset and portfolio management as well as on establishing and maintaining good relationships with its key customers and decision makers. For further information, please visit: www.alstria.com This release constitutes neither an offer to sell nor a solicitation of an offer to buy any securities. The securities have already been sold. As far as this press release contains forward-looking statements with respect to the business, financial condition and results of operations of alstria office REIT-AG (alstria), these statements are based on current expectations or beliefs of alstria's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of alstria. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences. alstria undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Contact Dr. Charlotte Brigitte Loos Manager Public Relations & Investor Relations Tel.: +49 - 40 - 226 341 329 Fax: +49 - 40 - 226 341 310 Email: pr@alstria.de Language: English Issuer: alstria office REIT-AG Fuhlentwiete 12 20355 Hamburg Deutschland Phone: +49 (0)40 226 341 300 Fax: +49 (0)40 226 341 310 E-mail: info@alstria.de Internet: www.alstria.de ISIN: DE000A0LD2U1 WKN: A0LD2U Indices: SDAX, EPRA, German REIT Index Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, Munchen, Stuttgart