The IMMOFINANZ Group announces the signing of an agreement for the acquisition of the remaining 69.22% stake in Adama Holding Public Ltd. as of June 16, 2011.
IMMOFINANZ has held its investment in this leading South East European residential property group since 2007 and will now become the sole shareholder. The purchase price for the stake totals 42.43 million. The sellers include the international US-based hedge fund Tiger Global, Morgan Stanley, Lehman Brothers UK in administration and the founding shareholders.
"We decided in favor of the complete takeover of Adama because the company and its brand name are well established in South-Eastern Europe. Our goals are to integrate the expertise and market know-how of local management into the IMMOFINANZ Group and to realize synergies to the greatest extent possible.
"From our viewpoint, Adama is the ideal platform for the planned expansion of our residential construction and development activities, above all in Romania," commented Daniel Riedl, Member of the Executive Board of the IMMOFINANZ Group, on the reasons for this transaction.
"The 100% takeover of Adama also underscores the steady implementation of our strategy to develop non-controlling interests into majority holdings and attain strategic control or to sell these investments," added Riedl.
Adama has completed approximately 1,500 apartments since its founding in 2005, 10 projects are currently under construction or realization. The company has a development portfolio of properties with a total area of over 1,360,000 m², which would allow for the realization of more than 40 additional projects.
Through the sale of apartments, the company was also successful in expanding its market share during the crisis.
"This market strength is a factor we want to use in future projects," explained Riedl.
"Our Romanian portfolio currently includes a number of undeveloped sites in Bucharest. The objective is to create entire city quarters an interesting challenge that we intend to address with the Adama team as soon as the Romanian economy can provide the necessary environment," commented Riedl on the mid-term plans of the IMMOFINANZ Group.
The formal approval of the competition authorities is required for the contract to become legally valid.
Source: ACCEDO Austria GmbH