Deutsche Annington Immobilien SE / Key word(s): Acquisition/Capital Increase 2015-06-14 / 22:22
INFORMATION TO THE MEDIA
Deutsche Annington acquires SÜDEWO Group with around 20,000 homes in Baden-Württemberg
- Acquisition of SÜDEWO Group, which has 19,800 homes in total, agreed with a total transaction volume of EUR 1.9bn
- SÜDEWO homes are a perfect addition to Deutsche Annington's presence in southern Germany, where it currently owns around 15,000 homes
- Goal of establishing a balanced portfolio in all attractive regions of Germany
- Plan to finance the transaction through a capital increase with subscription rights from authorised capital
Bochum, 14 June 2015 - Deutsche Annington Immobilien SE ('Deutsche Annington') intends to significantly expand its presence in southern Germany by acquiring SÜDEWO Group. SÜDEWO Group has a total of 19,800 homes. Deutsche Annington has reached a sales and purchase agreement with the group of investors who hold the shares in SÜDEWO Group. The total transaction volume for the acquisition of SÜDEWO Group is EUR 1.9bn. The closing is expected at the beginning of July.
'In the highly fragmented German market for rented housing we are availing of another opportunity to strategically expand our nationwide position,' said Rolf Buch, CEO of Deutsche Annington. 'Following the acquisition of Vitus Group in northern Germany, the acquisition of DeWAG in the south and the merger with GAGFAH, through which we strengthened our presence in the metropolitan regions of Berlin, Hamburg and Dresden, we are now further expanding our market position in the particularly attractive southern region. With the acquisition of the SÜDEWO Group we are moving a step closer to our goal of having a balanced portfolio in all attractive regions of Germany. Our business policy is focused on creating attractive and affordable housing for our tenants, thereby ensuring the sustainably successful performance of our business. We are continuing this commitment with the current acquisition of SÜDEWO Group. The tenants of both companies will benefit from cost advantages, high investment in maintenance and regional tenant support.'
Deutsche Annington is taking on all obligations, without restrictions, from the existing Social Charter, which secures the interests of tenants and the continuation of the respective company locations. In addition, Deutsche Annington meets the demanding and varied criteria that were set by the sellers. These include, for example, investment in the portfolio, demonstrable expertise in tenant support and a coherent, long-term strategy focused on tenant interests.
The SÜDEWO portfolio will strengthen Deutsche Annington's strategic presence in Baden-Württemberg, where the company is already represented with around 15,000 homes. The newly acquired portfolio has a very low vacancy rate of just 2.4% and is spread over several locations, alongside the cities of Stuttgart, Ulm and Mannheim, in a region with a remarkable dynamic economy.
As announced today, the company plans to conduct a capital increase with subscription rights from authorised capital with expected gross issue proceeds of EUR 2.25 bn to finance the acquisition of the SÜDEWO Group.
About Deutsche Annington
Deutsche Annington has its headquarters in Bochum and is Germany's leading real estate company with European dimensions. Throughout Germany, Deutsche Annington is present with 5,700 employees and offers customer-oriented services. With the integration of the 144,000 residential units of GAGFAH, the company now owns about 350,000 residential units, which are located mainly in major German cities and the associated catchment areas. The operating subsidiaries are full service providers of a wide range of services in the area of real estate management and facility management. The portfolio is worth around 21 billion Euros. Deutsche Annington is listed on the MDAX of the German Stock Exchange. (31 March 2015)
Additional information on the shares of Deutsche Annington: Listing: regulated market / Prime Standard, Frankfurt Stock Exchange ISIN: DE000A1ML7J1 WKN: A1ML7J Common Code: 094567408 Registered office of Deutsche Annington: Münsterstrasse 248, 40470 Düsseldorf, Germany Business address of Deutsche Annington: Philippstrasse 3, 44803 Bochum, Germany
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