Clearstream To Sell Headquarters In Luxembourg - Long-term Lease Agreement Between Clearstream And New Owner

Clearstream International S.A., Deutsche Börse Group’s securities settlement and custody provider, is to sell its headquarters in Luxembourg for € 350 million to the real estate company IVG Immobilien AG, Bonn. A corresponding contract was signed today. At the same time of the sale, Clearstream entered into a lease agreement with the owner of the buildings. The Luxembourg buildings are the only properties actually owned by Deutsche Börse Group, which rents all of its remaining office space. The sale and leaseback arrangement will see Deutsche Börse Group apply this concept to the Clearstream headquarters in Luxembourg, too, and will allow the company to benefit, at the same time, from the very positive current market environment for commercial real estate in Luxembourg.

All four buildings in “The Square” complex in the Kirchberg area of Luxembourg City are to be sold; the lease agreement only applies to the two buildings used by Clearstream itself. The sale price is considerably higher than the book value of around € 230 million. Deutsche Börse AG will receive the book profit over the course of 2008 via dividend payments from Clearstream. The transaction is expected to be concluded by the end of the year, and still requires approval by the Supervisory Board of Deutsche Börse AG.

Technically, the sale will be conducted via the disposal of four companies whose assets consist of the office buildings rented to Clearstream and third parties. The lease agreement between Clearstream and the related real estate companies who own the buildings has a 10-year term from the conclusion date of the transaction, with two 5-year extension options each for Clearstream.