ADLER Real Estate AG has secured the takeover of a majority of WESTGRUND AG, Berlin, Germany, by way of irrevocable undertakings, thus creating the fifth-largest listed residential real estate company in Germany by units.
The takeover will be carried out through a voluntary public takeover offer in adherence to the German Securities Acquisition and Takeover Act (WpÜG).
“The takeover of WESTGRUND AG offers the opportunity to generate considerable potential for synergies amounting to approx. €20 million over the next three years,” says Axel Harloff, CEO of ADLER Real Estate.
Both ADLER and WESTGRUND have almost similar business models and strategies and share the aim to build a considerable property portfolio in Germany targeting B- and suburban areas of German metropolitan regions and contributing a positive cash flow after deduction of all recurring costs. ADLER currently owns and manages in excess of 31,000 units; WESTGRUND owns and manages in excess of 18,000 residential units. Additionally, WESTGRUND secured the acquisition of further 2,700 apartments at the end of 2014. Following the takeover, the expanded ADLER Group will hold a total of almost 52,000 residential units in Germany.
WESTGRUND investors will immediately receive considerable advantages from the merger thanks to the premium offer amounting to approx. 20% regarding the last three month's average share price and the value of the new group, which is expected to have an EPRA NAV of approximately €14.60 per share.
“We are very pleased with the opportunity of carrying out this acquisition for our shareholders, as it offers an excellent fit,” Axel Harloff continues. “WESTGRUND owns an outstanding portfolio which is not adequately reflected in the share price.”
The transaction was advised by Oddo Seydler Bank AG.
Source: Adler Real Estate