Cerberus-Whitehall to place half of their stake in GSW

GSW's majority shareholders Cerberus and Whitehall said they are planning to sell 8.2 million shares in the Berlin-based residential property company.

The share volume represents roughly half of Cerberus and Whitehall's 40% stake in GSW, and would allow the two investors to raise around EUR 170 mln. GSW shares are currently trading at a price of EUR 21 per share, down from a record high of EUR 24.45 at the end of July and reflecting a 20% discount to Net Asset Value.

'We believe a potential equity increase by Deutsche Wohnen has led Cerberus/Whitehall to accelerate the share placement,' commented Berenberg Bank's analyst Kai Klose.

The move by the two opportunistic investors comes shortly after the termination of their six-month lock-up period, started in April when the company launched an Initial Public Offering. GSW raised EUR 470 mln in the offering on the Frankfurt stock exchange.

At the end of September GSW also signed an exclusive agreement to buy a residential real estate portfolio of about 4,800 apartments in Berlin from German listed housing group Gagfah for some EUR 330 mln. GSW is funding the purchase with the EUR 115 mln of the proceeds raised through the IPO.