German real estate company Deutsche Annington buys smaller rival
Germany's leading real estate group Deutsche Annington said Monday it has agreed to buy smaller, regional rival Suedewo for nearly 2.0 billion euros ($2.2 billion).
The group said it would conduct a 2.25 billion euro capital increase to finance the deal.
"Deutsche Annington intends to significantly expand its presence in southern Germany by acquiring Suedewo, which has a total of 19,800 homes," the company said in a statement.
"The total transaction volume for the acquisition is 1.9 billion euros. The closing is expected at the beginning of July."
"In the highly fragmented German market for rented housing we are availing of another opportunity to strategically expand our nationwide position," said chief executive Rolf Buch.
After having strengthened its presence in the metropolitan regions of Berlin, Hamburg and Dresden recently, "we are now further expanding our market position in the particularly attractive southern region," Buch said.
Deutsche Annington, which is headquartered in Bochum, owns about 350,000 residential units worth around 21 billion euros. It is listed on the mid-cap MDAX on the Frankfurt stock exchange.
© 2015 AFP