Aareal Bank Group acquires all of the shares of Westdeutsche ImmobilienBank AG (WestImmo), which specializes in commercial property financing. A corresponding sale and purchase agreement was signed with the previous owner Erste Abwicklungsanstalt (EAA).
The purchase price of €350 mln, is subject to contractually agreed adjustments until the closing date.
According to current planning, the transaction – which is subject to the approval of the respective authorities – is expected to be completed during the first half of 2015. Following the acquisition of COREALCREDIT BANK AG in the spring of 2014, Aareal Bank has once again effected a targeted investment in its core Structured Property Financing business by acquiring WestImmo, expanding its strong position on key target markets.
WestImmo's high-quality, low-risk commercial property financing portfolio, which is broadly diversified – both geographically and in terms of the type of financed properties – supplements Aareal Bank's activities in line with the Bank's strategy. Based on a pro-forma extrapolation as at 31 March 2015, WestImmo has total assets of €8.1 bln.
The volume of commercial property financings amounts to € 4.3 bln, with around one-third in Germany, approx. 38% in Western Europe, and around 9 per cent in North America. The remainder of the portfolio is related to select other markets.
Source: Aareal Bank Group