The Supervisory Boards of TAG Immobilien AG ('TAG' in the following) and Colonia Real Estate AG ('Colonia' in the following) approved the intended sale of POLARES Real Estate Asset Management GmbH ('POLARES' in the following) to the POLARES management team by way of a management buy-out.
POLARES was formed in the summer of 2011 from the merger of the former TAG Immobilien AG subsidiary LARUS Asset Management GmbH and the former Colonia Real Estate AG subsidiary Colonia Real Estate Solutions GmbH. This instantly made it one of the major commercial real estate service providers in Germany in terms of the volume of real estate property serviced.
The main focus of POLARES's business is asset and property management for commercially used real estate. The relinquishment of this division and the sale of 100% of the shares in POLARES is another step in focusing TAG Group on the management of its existing residential real estate portfolio.
The parties have agreed not to disclose the purchase price. The contract negotiations are nearly final; once they have been concluded, the transaction is expected to close on October 1, 2012.
The parties expect that POLARES's newly gained independence will help it to further improve its services and that the transaction will therefore have a positive effect on customer relations as well.
Rolf Elgeti, CEO of TAG, comments: "POLARES will maintain its ties with the TAG Group after the sale. For instance, it will continue to look after the TAG Gewerbeimmobilien-Aktiengesellschaft portfolio and remain a tenant at the TAG company headquarters in Hamburg. We are convinced that POLARES will use the freedom resulting from the sale to develop its business positively.
"For POLARES customers and contractors, the transition changes nothing; the transaction will benefit their services. At the same time, this further streamlines the structure of TAG and we are taking a further step towards focusing on the residential business. We wish the management and staff of POLARES the best of success in their future business."
Source: TAG Immobilien AG