Deutsche Annington Immobilien SE has acquired around 11,500 residential units managed by DeWAG, on the integration of a combined portfolio owned by Vitus group of around 30,000 residential units and on capital increases out of authorised capital.
Both transactions meet the acquisition criteria communicated by Deutsche Annington and are FFO and NAV accretive.
In this context, Deutsche Annington has reached an agreement in principle with certain shareholders of the Vitus group (Vitus) with respect to the integration of certain Vitus entities comprising around 30,000 residential units into the Deutsche Annington group for a consideration of EUR1.4 bn (including the assumption of certain liabilities and the repayment of third party debt). The agreement in principle is subject to certain closing conditions. The agreement in principle is also subject to the approval of cartel offices and certain shareholders of Vitus. Completion of the transaction is planned for the fourth quarter of 2014.
In addition, Deutsche Annington entered into a purchase agreement with respect to the acquisition of a portfolio of around 11,500 residential units managed by DeWAG. The purchase price for this portfolio amounts to about EUR 970 million (including the assumption of liabilities). The acquisition is subject to certain conditions to closing. Completion of the acquisition is planned for the second quarter of 2014.
The combined portfolio of about 41,500 residential units comprises floor area of more than 2.6 million sq m. Furthermore, the transactions increase Deutsche Annington’s presence in northern Germany with over 9,500 residential units in Bremen and about 9,250 residential units in Kiel. The vacancy rate of the combined portfolio is below 4 %.
Deutsche Annington will finance the transactions with the assumption of existing liabilities and a combination of equity and debt instruments.