GBW resi portfolio attracts dozens of bidders

GBW's residential portfolio has received over two dozen expressions of interest following the launch of the sale process late October by Bavarian bank BayernLB, well-informed market sources confirmed to PropertyEU on Monday.

BayernLB is selling GBW, owner of 33,000 residential units in Germany, as part of a restructuring plan approved by the European Commission following a multi-billion bailout it received in the wake of the financial crisis.

'I can confirm that there is a lot of interest in this transaction from both German players and international institutions,' Matthias Lucke, a spokesperson for BayernLB, told PropertyEU. Initial non-binding bids are due in mid-December, with the company planning to select a group of potential investors in early 2013. Shortlisted parties will gain access to the data room, Lucke added.

The deal, which is being managed by BayernLB's transaction team together with investment bank Lazard, is expected to be the biggest German property deal of 2013. Although there is no asking price as the value will be determined by investors' offers, it is understood that the assets could fetch over EUR 2.5 bn. Closing is planned for April 2013.

Germany's Patrizia Immobilien and Austrian group Immofinanz have publicly expressed interest for the package while other players including Deutsche Wohnen, TAG Immobilien, Corpus Sireo as well as Conwert are all rumoured to be looking at the assets. Private equity investors Blackstone and Cerberus as well as a municipal consortium of the cities of Munich, Nuremberg and Erlangen are also understood to be considering an offer.

'By selling our shareholding in GBW, which owns more than 32,000 apartments in Bavaria, we are offering investors an attractive opportunity to participate long-term in one of the most high-growth regions of Europe. In the transaction, BayernLB will take into account the interests of the tenants, but also its obligations to the EU Commission to repay state aid it received,' commented Gerd Haeusler, CEO of BayernLB. The company owns 97% of GBW.

GBW, founded in 1936 and listed on the Munich over-the-counter market, is one of the leading residential construction companies in Bavaria. A good two-thirds of its residential portfolio is located in the major Bavarian cities of Munich, Nuremberg and Regensburg. GBW's residences enjoy a nearly 100% occupancy rate and have a value of around EUR 2.4 bn.