Corestate Fund holds roughly 96% stake in Alta Fides (DE)
Wednesday 15 October 2008
By the end of the subscription period for the public mandatory offer for ALTA FIDES Aktiengesellschaft für Grundvermögen by GOETHE INVESTMENTS S.à r.l., a subsidiary of the CORESTATE German Residential Limited fund managed by private equity investor CORESTATE Capital AG, a further 19.71% of stocks had been tendered to the Stuttgart-based real-estate group.
The subscription period for the mandatory offering ended at midnight on October 7, 2008. GOETHE INVESTMENTS S.à r.l. and its affiliates accordingly hold a total of 95.94% of the company's shares, which means that a squeeze-out of the remaining ALTA FIDES shareholders by CORESTATE would be possible. Such a process is not intended, however. Yet those ALTA FIDES stockholders who have not tendered their shares to date are entitled, on account of the 95% threshold being exceeded, to accept the mandatory offer even after the end of the subscription period until the close of January 13, 2009 at the offering price of 15.00 per share.
"We are very happy with the final acceptance results of our offering to the ALTA FIDES shareholders, who have given a clear indication of support for the transaction", says Daniel Schoch, Chief Financial Officer of CORESTATE Capital AG. "We will now extend our already successful collaboration and focus on supporting the further development of the market and the ambitious growth plans of ALTA FIDES AG."
With this transaction, CORESTATE has secured a first-class platform in particular to tap the growth potential of student homes as an asset class. ALTA FIDES is a first mover in this segment and market leader in Germany. On the other hand, by expanding the commitment of CORESTATE, ALTA FIDES is in the process of securing a partnership with a group of companies that has experience in the real estate sector, coupled with financial clout and a high level of expertise in the field of asset management.