Listed German property firm TAG Immobilien is acquiring Deutsche Kreditbank's residential property arm DKB Immobilien in a deal involving EUR 160 mln of equity, the companies said in a statement on Monday.
Listed German property firm TAG Immobilien is acquiring Deutsche Kreditbank's residential property arm DKB Immobilien in a deal involving EUR 160 mln of equity, the companies said in a statement on Monday.
The transaction will increase TAG's residential property inventory by some 25,000 units to 56,000 units, and increase the group's net balance sheet assets to around EUR 3 bn.
DKB Immobilien's properties, which were valued at about EUR1 bn at the end of last year, are almost all in the former East Germany.
'This is a transformational transaction for TAG,' said chief executive Rolf Elgeti in a statement. 'TAG takes a sustainable, long-term approach to residential property management. By taking over DKB Immobilien, we have attained a structure and magnitude that lets us do this economically.'
TAG submitted a binding offer for DKB Immobilien on 29 February with a cash component of EUR 160 mln. The purchase will largely be financed through TAG’s share issue last week that raised nearly EUR 130 mln.
