The investor consortium led by PATRIZIA Immobilien AG has emerged as the successful bidder for BayernLB’s shares in the listed housing company GBW AG (50.19 million shares representing approx. 91.93 %). BayernLB announced today that both its Board of Administration as well as its Management Board today voted in favor of the consortium’s bid. The gross purchase price of the offer corresponds to an enterprise value of GBW AG of €2.453 billion or €17.58 per GBW share held by BayernLB (equity value purchase price of €882 million).
The transaction is subject to customary antitrust approval and closing is expected to take place after the annual general meeting of GBW AG, which is scheduled for May 15 this year.
The investor consortium led by PATRIZIA consists of a number of well-known institutional investors located in German-speaking countries, including pension funds, insurance companies and savings banks. PATRIZIA Immobilien AG will contribute capital of approximately €58 million. In the context of the transaction, further share purchase agreements will be entered into, representing a combined total of approximately 96.5 % of the shares in GBW AG to be acquired.
“The acquisition of GBW is another important milestone of PATRIZIA Immobilien AG's growth strategy on its way to being Europe's leading full-service property investment manager. We are particularly pleased to announce that more than half of all investors of the LBBW Immobilien consortium (now Süddeutsche Wohnen GmbH) have chosen to invest again together with PATRIZIA Immobilien AG as part of the GBW AG transaction. This clearly demonstrates the level of trust PATRIZIA enjoys amongst its partners,” states Wolfgang Egger, Chief Executive Officer and founder of PATRIZIA Immobilien AG.
PATRIZIA will act as investment and asset manager following the acquisition, thus increasing PATRIZIA's assets under management to approximately €10 billion. PATRIZIA Immobilien AG will not be merged with GBW AG.
As of December 31, 2012, GBW group owned approximately 32,000 residential and 300 commercial units exclusively located in Bavaria, one of the most attractive regional property markets in Germany. In 2012, GBW’s portfolio generated rental income of €149.5 million.
The purchase price for the entire equity stake will be financed entirely from equity. Existing credit lines of GBW AG remain in place and will be partially repaid over time. “PATRIZIA is fully aware of its responsibility towards GBW AG's tenants and employees, to the seller and last but not least towards our investors,” says Egger. A detailed and rigorous social charter forms part of the purchase agreement with BayernLB.“ We are determined to and will fully implement the social charter. As a result tenants have better protection than was the case before the sale.”
To ensure compliance with the social charter, PATRIZIA will establish the position of ombudsman which reports directly to the Managing Board. This ombudsman will be responsible for compliance with the social charter. “We want tenants to be satisfied and continue using their apartments,” said Egger. There will also be regular meetings with the mayors of the towns in which the GBW apartments are located.