Frankfurt-listed residential investor Adler Real Estate has decided 'not to pursue' a convertible bond issue to fund its successful takeover of Berlin peer Westgrund due to the effect of the Greek euro crisis on stock markets.

Frankfurt-listed residential investor Adler Real Estate has decided 'not to pursue' a convertible bond issue to fund its successful takeover of Berlin peer Westgrund due to the effect of the Greek euro crisis on stock markets.

Adler completed the €790 mln cash and shares acquisition of almost 95% of the shares in Westgrund on 23 June.

A company spokesperson confirmed to PropertyEU that the cancellation of the convertible bond issue has not affected the takeover, which has now completed successfully.

In a statement last week, Adler said, 'Due to the impact of the situation in Greece on the stock markets, Adler's management board, after consultation with the advising banks, came to the conclusion that it is in the best interest of the company not to pursue a capital markets transaction in the current market environment. Accordingly, the subscription offer described in the prospectus will not be pursued.'

The combined group's 50,000 units will make it the fifth largest listed residential landlord in Germany. Adler also took Westgrund's place in the SDAX stock exchange index.