Immofinanz launches sale of €700m CA Immo stake

Vienna- and Warsaw-listed property group Immofinanz has announced the launch of a structured bidding process to dispose of its 26% stake in peer CA Immo after completing a review of its strategic options.

The sale process comes shortly after Immofinanz announced plans last month to ditch a planned merger with CA Immo. Immofinanz's 25.7 million ordinary shares in CA Immo are worth some €700 mln at current market prices.

The company's holdings also include four registered shares which carry the right to appoint members to the supervisory board.

In a statement, Immofinanz said that it is inviting investors to express their interest by 30 April 2018. The company gave no timetable for the process.

Starwood enters the scene
The announcement comes within days of US real estate investment firm Starwood Capital Group launching bids for minority stakes in CA Immo and Immofinanz as well as Immofinanz acquiring more than 29% of S Immo, the third property group on Austria’s blue-chip ATX share index.

Starwood published offer documents earlier this week for minority stakes in CA Immo and Immofinanz, pursuing plans to diversify in CEE markets.

Last month, Immofinanz had dismissed the terms offered by Starwood for a 5% stake in the firm, calling the price 'inappropriate'. CA Immo said it needed more information to decide.

According to Starwood documents, the Immofinanz offer expires 30 May, while the offer for CA Immo runs until 16 May.

Immofinanz shops elsewhere
Meanwhile, Immofinanz has purchased a €390 mln stake in Austrian peer S Immo from member companies of the RPR Group, and from the Signa Group.

The Austrian company said the deal would be funded from 'available liquidity and, if necessary, through additional bank financing'. The transaction is expected to close in a matter of months.

'The real estate portfolio of S Immo complements the Immofinanz portfolio in the office and retail areas,' Immofinanz said in a statement. 'The transaction is therefore expected to strengthen the market position of both companies and create synergies for the management of the properties. In the event of a future combination of the two companies, the increased size would lead to a stronger position on the capital market.'


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