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‘Deutsche Wohnen to acquire Isaria’
Posted on Wednesday, 25 March 2020 13:39
German property group Deutsche Wohen has agreed to acquire the majority of the operations of Isaria for EUR 600.00 million, according to recent media reports.
Reuters cited a statement from the companies as saying the target’s owner, buyout group Lone Star, started plans to offload the group last year.
Deutsche Wohen is expecting the acquisition to complete by the end of the year, subject to the usual raft of conditions.
The deal brings 13 property projects with a volume of around EUR 2.00 billion and 90 employees.
Peter Finkbeiner, chief executive of Isaria, said: “The transaction speaks for the quality of our project pipeline. Both sides complement each other well and can contribute their respective strengths.”
Sources close to the matter told Reuters last year that Lone Star is preparing a sale or stock market flotation as it is hoping to benefit from buoyant real estate valuations.
At the time, the group hired VictoriaPartners to advise on the situation as it looks for a value of EUR 500.00 million.
Deutsche Wohnen said it is planning to invest more than EUR 3.00 billion in building new residential nursing and commercial properties.
The acquiror is one of the leading publicly-listed property companies in Germany and across Europe.
It is focused on managing and developing its portfolio, concentrating on metropolitan areas with 164,000 residential and commercial units with a total fair value of EUR 24.20 billion and nursing properties with 12,200 beds and apartments for assisted living worth EUR 1.30 billion.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 16 deals targeting German real estate companies announced worldwide in 2020 to date.
BlackRock decreased its stake in TLG Immobilien by 3.3 per cent to EUR 122.86 million in the largest of these.
Other targets have included Deutsche Wohnen, Deutsche Konsum REIT, TAG Immobilien and alstria office REIT.
© Zephus Ltd