Deutsche Wohnen to acquire Berlin residential real estate portfolio from Blackstone affiliated real estate funds for EURO 369 million (*)
- Transaction to be completed through a mixture of cash and new shares in Deutsche Wohnen AG
- Blackstone affiliated funds to take an approximate 5% stake in Deutsche Wohnen on completion
Frankfurt (Main) / Berlin, 26 April 2013. Deutsche Wohnen AG is to acquire a residential real estate portfolio of approximately 6,900 units in Berlin from affiliates of Blackstone Real Estate Partners Europe III (“Blackstone Funds”) in a cash and shares transaction that will result in the Blackstone Funds becoming a 5% shareholder in Deutsche Wohnen.
With this acquisition, Deutsche Wohnen will increase its existing residential real estate portfolio to 90,300 residential units, of which 54% are located in Greater Berlin. For Deutsche Wohnen, this acquisition represents another attractive opportunity in its consistent continuation of its value-adding growth strategy.
“We are excited about this growth opportunity in Berlin, our largest core+ region, i.e. regions with the most dynamic markets and strong rental growth expectations. With this transaction, we can scale our existing operating platform in Berlin and, by doing so, further improve our FFO profile. Additionally, we are pleased to welcome Blackstone as a shareholder in Deutsche Wohnen AG,” states Michael Zahn, CEO of Deutsche Wohnen AG.
Kenneth Caplan, Head of European Real Estate at Blackstone, said:
“Today’s announcement reflects a superb transaction for both Blackstone and Deutsche Wohnen. We are delighted that our Berlin multi-family portfolio is becoming part of Deutsche Wohnen and we are excited to become a shareholder of this market leading residential company with high quality properties.”
The purchase price for the acquisition of the residential real estate portfolio consists of cash amounting to EUR 260 million and 8,150,000 new shares in Deutsche Wohnen to be issued to the Blackstone Funds.
Deutsche Wohnen AG will conduct a capital increase in the nominal amount of approximately 5% of its current share capital to satisfy the equity component of the consideration against contributions in kind and under exclusion of shareholders’ subscription rights. The new shares will carry full dividend rights as of January 1, 2013.
The transaction, subject to the capital increase and usual closing conditions e.g. anti-trust, is expected to complete in a few months.
* based on closing price of shares in Deutsche Wohnen on 25 April 2013
About Deutsche Wohnen
Deutsche Wohnen is one of the largest publicly listed residential property companies in Germany with a business focus on managing and developing its residential property portfolio. The portfolio comprises around 83,500 units in total, of which around 82,500 are residential units and 1,000 are commercial properties. The company is listed in the Deutsche Börse’s MDAX and is also included in the leading indices EPRA/NAREIT and GPR 250.
About Blackstone
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com. Follow us on Twitter @Blackstone.
For further information:
Deutsche Wohnen
Manuela Damianakis
+49 308 978 6505
Blackstone
Andrew Dowler
Finsbury
+44 (0)207 251 3801
Mirko Wollrab
CNC Communications
+49 695 060 37 562