Hamburg-based real estate group Tag Immobilien is acquiring a 15% stake for EUR 2.15 per share in listed German residential property specialist Estavis. The investment is being carried out through the issue of 1.4 million new shares.
Hamburg-based real estate group Tag Immobilien is acquiring a 15% stake for EUR 2.15 per share in listed German residential property specialist Estavis. The investment is being carried out through the issue of 1.4 million new shares.
The subscription price of EUR 2.35 per share is equivalent to a premium of around 37% on the closing price on 23 February 2010.
The deal also involves contributions in kind to Estavis of an unencumbered listed property in the centre of Berlin. On a total area of some 3,900 m2, 54 apartments and loft apartments are being created through the planned refurbishment of the property built in 1910. Estavis expects revenues of some EUR 13 mln from the sale of the listed apartments.
'The transaction with Tag is a great mark of confidence in the potential of our business model and underlines our competence as an exit partner for portfolio holders,' Estavis CEO Florian Lanz said. 'At the same time we are acquiring a unique listed property in the heart of Berlin that will enable us to tap additional growth potential in our core business field.'
Tag's strategy is geared towards long-term value enhancement. The company concentrates on active asset management and the development of the portfolio. 'We have confidence in Estavis and the prospects of its business model,' said Tag's CEO Rolf Elgeti.