Archstone-Smith Acquires 657-Unit Residential
Portfolio in Berlin, Germany
DENVER– May 22, 2006 – Archstone B.V., a wholly owned subsidiary of Archstone-Smith (NYSE: ASN), one of the largest apartment companies in the United States, today announced the acquisition of a 657-unit apartment portfolio in Berlin, Germany, from Cargill Value Investment, a leading international principal investor with more than $7 billion in assets under management, and HPE, a subsidiary of GE Commercial Finance Real Estate Germany, for $50.5 million (€39.9 million). This acquisition is Archstone's second in Germany, following the acquisition of an 822-unit portfolio in Mannheim in the fourth quarter of 2005.
"This portfolio gives Archstone a well-located and well-maintained presence in the capital city of Berlin, a location with significant growth potential," said R. Scot Sellers, chairman and chief executive officer.
The portfolio is ideally located in the Siemensstadt area of Spandau in the former West Berlin. Siemensstadt is characterized by a strong public transportation infrastructure – just 10 minutes away from Berlin-Tegal Airport and just 15 minutes from the centers of Berlin – and a host of public amenities, including parks, sporting clubs and public swimming facilities. The portfolio comprises 657 residential and 14 commercial units – many of which have historic protection. The residential units include large floorplans, wooden floors, balconies and large private and common gardens. Sietz and Partner Ltd. & Co. KG advised Archstone on the transaction.
Archstone-Smith (NYSE: ASN), an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of $17.0 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Southeast Florida, Chicago, and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers – backed by unconditional service guarantees. As of April 30, 2006, Archstone-Smith owned or had an ownership position in 252 communities, representing 85,396 units, including units under construction.
GE Real Estate (www.gerealestate.com) is a world leader in real estate capital. Formed in 1972, the business has more than $35 billion in assets with 24 offices located throughout North America, Europe, Asia, and Australia/New Zealand. GE Real Estate, backed by its parent company's AAA rating, offers a broad range of debt, equity and servicing solutions including: intermediate and long-term mortgages, restructuring and acquisition capital, niche equity investment/joint ventures, capital markets securitization and placements, and asset management. As one of the fastest growing units within GE Commercial Finance, Real Estate has experienced annual growth of more than 10% for the last ten consecutive years.
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In addition to historical information, this press release contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith operates, management's beliefs and assumptions made by management. While Archstone-Smith management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management's control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information. See "Risk Factors" in Archstone-Smith's 2005 Annual Report on Form 10-K for factors that could affect Archstone-Smith's future financial performance.