German listed office landlord Fair Value REIT is recommending its shareholders accept a takeover offer put forward by peer Demire last week.
German listed office landlord Fair Value REIT is recommending its shareholders accept a takeover offer put forward by peer Demire last week.
Fair Value REIT's board said it deems the offer as 'appropriate' and recommended shareholders to accept it.
Demire, which is offering two shares for each Fair Value REIT share, has already received backing from Fair Value REIT's core shareholders Obotritia Capital and Kienzle Vermoegensverwaltung.
If it goes ahead the merger will create a commercial property specialist focused on German secondary locations with a combined portfolio value of €1 bn.
Demire’s value-add acquisition strategy is seen as a good match to Fair Value’s focus on acquisitions via closed-end funds. Munich-based Fair Value REIT owns a total of 44 properties valued at €306 mln. The portfolio consists of 57% of retail space, 33% of offices and 10% of other assets.
'The management board and supervisory board explicitly welcome the opportunity to further grow by merging with Demire in order to create the leading German commercial property specialist focused on German secondary locations,' Fair Value REIT said.
The operation would be the latest merger in the German listed property sector. German investor Alstria Office REIT has just closed its voluntary public takeover offer for DO Deutsche Office, in a deal that values its target at €800 mln.
Alstria has received a 90.6% acceptance ratio from Deutsche Offer's shareholders for its share bid of 0.38 of a new bearer share for each Deutsche Office share. Furthermore, Alstria has exercised a call option for a further 4.0% of Deutsche Office shares.