German listed office landlord Demire announced on Monday that it has tendered 50.1% of Fair Value REIT's shares, the minimum acceptance rate to make its offer unconditional.

German listed office landlord Demire announced on Monday that it has tendered 50.1% of Fair Value REIT's shares, the minimum acceptance rate to make its offer unconditional.

Demire, which is offering two shares for each Fair Value REIT share, has received backing from Fair Value REIT's core shareholders Obotritia Capital and Kienzle Vermoegensverwaltung.

In addition, Fair Value REIT's board last week recommended the offer, saying it deemed it 'appropriate'.

The merger will create a commercial property specialist focused on German secondary locations with a combined portfolio value of €1 bn.

Demire’s value-add acquisition strategy is seen as a good match to Fair Value’s focus on acquisitions via closed-end funds. Munich-based Fair Value REIT owns a total of 44 properties valued at €306 mln. The portfolio consists of 57% of retail space, 33% of offices and 10% of other assets.

Demire is expected to announce the results of the offer later this week.