O1 Group, one of the largest office owners in Russia, has acquired a 16.4% stake in Austrian listed property firm CA Immo, representing a total investment of nearly €300 mln.
O1 Group, one of the largest office owners in Russia, has acquired a 16.4% stake in Austrian listed property firm CA Immo, representing a total investment of nearly €300 mln.
O1 Group, the Cyprus-registered parent Group of Moscow-based listed developer O1 Properties, is paying €18.5 per CA Immo share representing a 14% premium to the share's closing price on Thursday of €15.94.
The total 16 million shares represent a 16.35% stake in CA Immo and are being sold by shareholder, Unicredit's Bank Austria.
In a press release, O1 Group said it also plans to launch a public offer for an additional 26% of equity in CA Immo, noting that the price paid represents a discount to net asset value.
The voluntary public tender offer, which would bring O1's stake to over 42%, is subject to the successful closing of the initial acquisition which is expected to close on 10 November.
'We are excited to have the opportunity to invest in CA Immo and support its management in further development of its focused strategy in Europe. The company has an attractive portfolio of modern and sustainable office assets with the highest quality tenants similar to what O1 Properties has in Moscow,' commented Boris Mints, O1 Group's chairman and head of O1 Properties.
'We are committing ourselves as a long-term and responsible shareholder keeping to the highest corporate governance standards. We would also like to note the important role that Bank Austria has played in supporting and assisting both CA Immo and our subsidiary O1 Properties in its growth. Through our investment in CA Immo we look forward to further develop our relationships with the bank.'
CA Immo's CEO Bruno Ettenauer added: 'We are very pleased with our new shareholder who has a profound understanding of the premium office real estate arena and will contribute experience gained from the dynamic and sustainable growth that it has achieved in its own market. O1 Group and its subsidiary O1 Properties have built an enviable reputation and we think all shareholders will benefit from the insights and stability of having a leading industry player as a core shareholder.'
CA Immo is a Vienna-listed real estate company with a portfolio valued at €3.5 bn and composed of largely office properties throughout Germany, Austria and central Europe. The company has a market capitalisation of around €1.6 bn.
'In addition, it has an exciting development portfolio in growth markets such as Berlin, Frankfurt and Munich that will further add value in the future,' O1 said.
O1 Group is a private holding company which owns over 60% of O1 Properties, one of the largest office landlords in Moscow with almost 500,000 m2 of rentable space. Its portfolio includes the flagship $1 bn White Square complex in Moscow. Other major shareholders of O1 Properties are ICT Group (26%) and Goldman Sachs (12%).
The seller was advised and assisted in the transaction by Citigroup and UniCredit Corporate Finance Advisory Team, and the buyer by Colliers International, Ithuba Capital, Goldman Sachs International and JP Morgan. CA Immo was supported by Deutsche Bank.
Stanislav Bibik, executive director, head of capital markets department at Colliers International Russia: 'We were delighted to have the opportunity to work for O1 Properties on this landmark investment, which involved a ten country internal team to advise on a €4 bn portfolio, demonstrating the strength and depth of our EMEA Investment Services team's capabilities.'