Covivio has announced its decision to launch a voluntary public takeover offer for all shares in Godewind Immobilien. The offer is launched for €6.40 per share and has the full support of both the Management Board and the Supervisory Board of Godewind. Covivio has secured up to c.35% of Godewind’s fully diluted share capital. Following the closing of this major investment, the company will have critical mass in the German office real estate market with a total portfolio of €2.1bn.
This transaction will enable Covivio to acquire a core portfolio of 10 offices buildings (290,000m²) valued at €1.2bn and located in Frankfurt (40% of the portfolio), Dusseldorf (28%), Hamburg (24%) and Munich (8%). These 4 cities are among the Top 10 biggest European offices markets alongside Paris, Berlin and Milan where the company is already active. Covivio will deploy asset management work on this portfolio focused on reducing vacancy rate and increasing rents. The expected investment yield is 4.7% following current vacancy reduction (~8%; 4.3% immediate yield) and potentially >5.0% given the value creation levers (reversionary potential above 10% and a potential 15,500m² development in Munich).
"Covivio is continuing its European development and is now reaching an important step in its growth in Germany. With this acquisition, Covivio creates a €2.1bn offices platform located in Germany's most dynamic cities. As in France and Italy, Covivio intends to contribute to the design of the city of tomorrow and to offer high-performance, flexible and service-oriented spaces”, commented Christophe Kullmann, Chief Executive Officer of Covivio.
