Immofinanz takes full ownership of SEE developer Adama

Austrian listed group Immofinanz has signed an agreement to acquire the remaining 69.22% stake it did not already own in Southeast European residential developer Adama. The vendors include US-based hedge fund Tiger Global, Morgan Stanley, Lehman Brothers UK in administration and the founding shareholders. The transaction price amounts to EUR 42.5 mln.

Immofinanz, which has owned a stake in Adama since 2007, will be the sole shareholder in Adama on closing of the deal. 'We decided in favour of the complete takeover of Adama because the company and its brand name are well established in Southeastern Europe,' said Daniel Riedl, executive board member of Immofinanz.

He added: 'From our viewpoint, Adama is the ideal platform for the planned expansion of our residential construction and development activities, above all in Romania.' The takeover is also in line with Immofinanz's strategy to turn non-controlling interests into majority holdings in order to attain strategic control, he added.

Adama has completed around 1,500 apartments since its founding in 2005, and currently has 10 projects under construction. The company has a development portfolio of over 1.36 million m².

Riedl said the company is planning to grow strongly in Romania. 'Our Romanian portfolio currently includes a number of undeveloped sites in Bucharest. The objective is to create entire city quarters - an interesting challenge that we intend to address with the Adama team as soon as the Romanian economy can provide the necessary environment.'

Adama, a Cypriot holding company with headquarters in Bucharest, Romania, focuses on new residential construction in Romania and as ancillary business it also develops office and commercial projects in Ukraine, Turkey, Croatia and Moldavia.