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Consus taking over SSN
Posted on Thursday, 08 November 2018 16:14
Consus Real Estate has signed on the dotted line to pick up a 93.4 per cent shareholding in SSN, the Germany-based real estate developer.
Under the terms of the deal, the target will have an enterprise value of EUR 1.10 billion.
The transaction will also see Consus acquiring 38.9 per cent of SG Development and 43.0 per cent of a Berlin-based SSN development project from Aggregate Deutschland, a majority shareholder in the buyer.
Consus believes the takeover will increase its gross development volume from EUR 6.20 billion to EUR 9.60 billion, while the number of development projects will rise from 53 to 65.
The firm will finance the deal, which is expected to occur in the fourth quarter of this year, using cash on hand and a EUR 250.00 million acquisition facility from JP Morgan.
Consus describes itself as a leading developer of residential real estate properties in nine German cities.
The company’s projects have a gross development value of EUR 6.20 billion.
SSN Group carried out an acquisition of its own in April of last year, when it paid an undisclosed consideration for Dusseldorf-headquartered property developer Gerch Development, which subsequently changed its name to SG Development.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 2,848 deals targeting real estate companies announced worldwide since the beginning of 2018.
Of these, the largest is worth USD 11.40 billion and involved Brookfield Asset Management agreeing to take over Forest City Realty Trust.
This was followed by a USD 9.25 billion deal in which Brookfield Property increased its shareholding in US-headquartered GGP from 34.0 per cent to 100.0 per cent.
Other companies in the sector to have been targeted since the beginning of this year include DCT Industrial Trust, Gramercy Property Trust and Corporate Property Associates 17 – Global.
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