Following the approval of the competition authorities IMMOFINANZ Group completed the acquisition of the remaining 69.22% stake in Adama Holding Public Ltd. on November 9.
IMMOFINANZ Group has held an investment in this leading South East European residential property group since 2007 and is now 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 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 IMMOFINANZ Group, on the reasons for this transaction.
The full takeover of Adama also illustrates the steady realization of the Group's strategy to develop non-controlling interests into majority holdings and attain strategic control or to sell these investments.
In a first step Clemens Eisinger and Andreas Holler, two experienced IMMOFINANZ managers, will join Dvir and Isaac Cohen-Hoshen on the Management Board of Adama Holding.
Adama has completed approximately 1,500 apartments since its founding in 2005, and 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 IMMOFINANZ Group.
Source: IMMOFINANZ Group