German residential developer Instone has acquired the residential property development arm of Sontowski & Partner Group, a business focused on the market of northern Bavaria.
Financial details were not disclosed.
In the deal for S&P Stadtbau, Essen-based Instone said it would add 20 professionals to its team whilst acquiring six existing project developments.
Two of the ongoing schemes are mixed-use urban quarter developments, where Instone will take over the development of the residential elements, while S&P Group remains responsible for the commercial parts. In total, the projects involve the development and construction of around 1,000 residential units over the coming years, with an anticipated total sales volume of €300 mln.
Kruno Crepulja, CEO of Instone Real Estate, said: 'Through this transaction, we have succeeded in expanding into a new and strategically important region. With the S&P Stadtbau activities, Instone is acquiring one of the premier property developers in the rapidly growing metropolitan region of Nuremberg.
'We are also complementing our existing activities in the greater Berlin, Düsseldorf, Frankfurt am Main, Hamburg, Cologne, Leipzig, Munich and Stuttgart areas,' Crepulja added.
'With Instone, we have found the ideal long term partner for a continued expansion of the residential property development activities,' said Klaus-Jürgen Sontowski, managing partner of Sontowski & Partner Group.
Within the framework of the transaction, the firms have also agreed close cooperation in various areas, including third party sales and across mixed commercial and residential developments.
Sontowski & Partner said it also intends to acquire Instone shares for a single-digit million amount during the current year, with the intention to keep a long-term position in the nationwide market for residential project developments.
The deal is expected to close by the end of August, with integration of the residential business targeted for year end.
Victoriapartners acted as financial advisors to Sontowski & Partner Group.
The merger follows the recent acquisition by German peer Commodus of the residential construction business of Bavaria's P&P Group.
