FdR launches bid for €348m Berlin residential portfolio

French REIT Foncière des Régions (FdR) has tabled a public takeover bid for a €348 mln residential portfolio in central Berlin.

If successful, the takeover of the Danish listed company, Berlin IV, would add 2,735 residential units in central Berlin to FdR's German residential platform Immeo.

The Berlin IV portfolio comprises 135 buildings located in the heart of Berlin, 70% of which were built before 1918 and generates €16 mln in annual rental income. FdR said that the assets offer 'great value-creating potential'.

The French REIT already indirectly owns 25.27% of the voting rights in Berlin IV, and 5.18% of its share capital. In addition, FdR has irrevocable commitments to support the launch from other shareholders representing more than a third of the voting rights and share capital.

The takeover offer is conditional on FdR obtaining 50% of the voting rights. The purpose of the transaction is to obtain more than 90% of the voting rights and share capital and, as a result, the de-listing of the company. The bid should be closed by the end of 2015.