A partnership advised by private equity firm Vestigo Capital Advisors has acquired a stake of around 80% in Accentro Real Estate from owner, German firm Adler for a total price of €180 mln.
The transaction also includes around 92% of the convertibles 2014/2019 issued by Accentro, bringing Vestigo's acquired stake to around 82% on a fully diluted basis.
The sale is structured with a first down payment by the buyer at signing, followed by successive tranches of the purchase price (including interest) to be paid over the next 13 months.
Based in Berlin and listed in Frankfurt, Accentro Real Estate focuses on residential assets with its core business consisting of tenant-sensitive housing privatisations.
Under the terms of the agreement, Adler also has an option to sell a further holding of up to 6% in Accentro Real Estate at the same price per share.
'We have taken a decisive step towards simplifying and concentrating on our core business model,' said Arndt Krienen, CEO of Adler Real Estate AG. 'We will no longer be conducting trading activities, but will instead, concentrate on our core business of lettings, i.e. on providing tenants with a supply of housing, primarily in the affordable segment, that is in line with the market and attractive in terms of quality.'
Adler said it had acquired the holdings for a total of €108 mln, meaning that Accentro has been a successful strategic investment which delivered a contribution to equity of more than €70 mlnover a three year period.
Adler intends to use the proceeds from the sale to further grow its real estate portfolio and/or for the redemption of existing liabilities in line with strategy to improve its capital structure.
'As the sale will also strengthen the equity base of Adler Real Estate by around €45 mln and will thus support our financial policy, in particular to reduce LTV to below 55 % and targeting to obtain an investment grade rating. This in turn will significantly improve the conditions for our future financing,' added Krienen.
The closing of the transaction is scheduled for the end of November at the latest. It is expected to trigger a mandatory takeover offer for all shares of Accentro pursuant to the German Securities Acquisition and Takeover Law, unless the buyer launches a qualifying voluntary tender offer for all shares of Accentro.
