Adler Group sells majority stake in Brack Capital Properties to LEG Immobilien

BCP owns 9,101 residential units spread across Germany, primarily in North Rhine-Westphalia, Hannover, Bremen, Kiel, and the eastern regions of Leipzig, Magdeburg, and Halle. In addition, BCP holds development projects in Grafenberg and Gerresheim, encompassing approximately 200,000 m2 of land with the potential to develop around 1,650 apartments.

The sale will occur in two phases. Initially, Adler Group will directly sell 52.68% of its stake in BCP to LEG Immobilien in the first week of January 2025, for €45.00 per share. In the second phase, Adler Group will tender its remaining 10.10% stake in a public offer under Israeli law, for €45.00 per share or more. The closing is expected no later than 1 January 2026.

With the acquisition, LEG Immobilien's total take in BCP will be 88.20% when combined with previous holdings.

Thierry Beaudemoulin, CEO of Adler Group, said: ‘We are glad to secure a pivotal transaction ahead of initial expectations. As we fully support BCP’s strategy, we are happy to have found a strong local partner in LEG in pursuit of securing and enabling BCP’s future under new ownership.’

Stefan Brendgen, chairman of the Board of Directors of Adler Group, added: ‘On behalf of the entire Board of Directors I can say that we are very pleased with the outcome of what has been a challenging process and that we have once more been able to deliver on the path set out in our efforts to restructure and stabilise the Group.’

The full integration of BCP, including addressing minority shareholders, is expected to be completed following merger control approvals in early 2025.

This transaction represents a key step in Adler Group's renewed business plan and will contribute to the company's financial stability. It also aligns with LEG's growth strategy, expanding its presence in key regions, particularly North Rhine-Westphalia.

Van Lanschot Kempen and White & Case acted as advisors on the deal.