Deutsche Wohnen Agrees to Buy $1.17B Real Estate Portfolio -DJ - Land.Net News
November 27, 2015 - German landlord Deutsche Wohnen AG late Friday said it agreed to buy a Berlin-based real estate portfolio valued at EUR1.1 billion ($1.17 billion) from Patrizia Immobilien AG.
The move complicates a hostile EUR14 billion offer that Germany's largest residential real estate firm, Vonovia SE, announced for Deutsche Wohnen, its biggest domestic rival.
Vonovia in October announced it would bid a mix of cash and shares for Deutsche Wohnen under the condition that the target company abstains from
"significant asset purchases." While Vonovia didn't specify further, Deutsche Wohnen indicated it wouldn't compromise Vonovia's bid.
The deal also hinges on Vonovia's shareholder approving it at an investor meeting Nov. 30 and on at least 50% Deutsche Wohnen shares being tendered.
Deutsche Wohnen's chief executive has repeatedly said the rival's approach would undervalue the company's shares and dilute its portfolio
The back and forth between both companies started in September, when Deutsche Wohnen said it was going to buy Germany's third-largest residential
real estate firm, LEG Immobilien AG. That transaction was derailed when Vonovia announced its own offer for Deutsche Wohnen.