Adler has agreed to acquire all the shares of ADO Group, an Israeli listed holding company and shareholder in ADO Properties, a €4.4bn GAV German-listed, residential, real estate company with a high-quality portfolio focused on Berlin. This transaction will create a large, pure-play German residential real estate company with a fully consolidated GAV of €9.4bn, net rental income of €366 and FFO I of between €130m and €140.
Tomas de Vargas Machuca, Adler Co-CEO and Chairman of the Executive Committee, said: "This purchase has an attractive entry price below ADO Group's EPRA NAV. This represents a highly attractive transaction on value per square meter and a considerable discount to privately traded Berlin residential portfolios. The acquisition also provides longer-term opportunities to generate sustainable shareholder value."
Maximilian Rienecker, Adler Co-CEO, added: "This transaction strengthens our balance sheet and P&L. It also further enhances our capital structure and reduces our fully consolidated leverage position. Against this background, Adler will review its dividend policy for the current financial year."