Pan-European logistics specialist CTP has unveiled plans to enter the logistics real estate market in Germany with a €800 mln public takeover and delisting offer for Deutsche Industrie REIT (DIR).
According to CTP, DIR's portfolio consists of 1.6 million m2 GLA across 3.9 million m2 of land, meaning that the all-in acquisition cost amounts to €728 per square metre of GLA, significantly below replacement costs.
The proposed takeover combines DIR's track record of asset sourcing in Germany with CTP’s development and asset management capabilities, and would give CTP the springboard for further growth thanks to DIR's country-wide network of 665 tenants across 89 assets in 12 of the 16 German federal states.
CTP said it would target significant improvements in the sustainability profile of DIR’s largely non ESG-certified logistics portfolio.
Remon Vos, founder and CEO of CTP, said: 'CTP is quickly delivering on the pan-European active growth strategy we outlined during our IPO earlier this year.
'Through our proposed acquisition of Deutsche Industrie REIT, 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.
'CTP will leverage DIR’s proven track record in acquiring and sourcing industrial and logistics assets across Germany and combine this with our 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.'
A business combination agreement has been signed between both companies, while the takeover comprises a share offer of 1.25 new CTP shares per DIR share, an implied offer price of €24.94 based on CTP's last closing share price of €19.95. The transaction comprises a legal mininum of €17.12 in cash per validly tendered DIR share. More than 56% of DIR shareholder support has been secured.
The transaction, which is not subject to any closing conditions, is being structured as an unconditional voluntary public takeover and delisting offer, with a subsequent cross-border merger to acquire 100% of DIR. Upon combination of the businesses, CTP is expected to have a combined portfolio value of €7.2 bn.
