European industrial property manager CTP has made an €800m offer for Deutsche Industrie REIT (DIR).
CTP said it intends to acquire full ownership of and integrate DIR into its business by offering DIR shareholders €24.94 for each share, an amount which represents a 48% premium to DIR’s last closing share price of €16.85.
DIR adds nearly €800m of yielding assets to CTP’s portfolio of owned assets of €6.4bn. Upon combination of the businesses of the two companies, CTP said it expects to have a combined portfolio value of €7.2bn.
As part of the deal, DIR is expected to delist from the Berlin and Frankfurt Stock Exchanges.
Remon Vos, founder and CEO of CTP, said CTP is delivering on the pan-European active growth strategy it outlined during its initial public offering earlier this year.
“Through our proposed acquisition of Deutsche Industrie REIT-AG, we create a meaningful entry into the German logistics and industrial real estate market.
“We are buying a portfolio of scale, below replacement value, where we believe we can increase rental values, improve operating margin, and realise redevelopment potential.”
Vos said CTP will leverage DIR’s proven track record in acquiring and sourcing industrial and logistics assets across Germany and combine this with CTP’s proven development capabilities.
“Combining DIR’s and our portfolio and tenant bases are expected to result in synergies that make for a compelling deal and immediately add to CTP’s EPRA earnings per share,” Vos said.
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