TAG Immobilien AG: TAG Immobilien AG's bid for DKB Immobilien AG accepted
TAG Immobilien AG / Key word(s): Acquisition
Hamburg, 26 March 2012 - TAG Immobilien AG ('TAG' in the following) today received confirmation that its bid to buy DKB Immobilien AG has been accepted. DKB Immobilien AG will cease to be part of the DKB AG group and will be consolidated in and managed by the TAG Immobilien group from now on. The transfer of shares will become effective within the first quarter of 2012.
Since DKB Immobilien AG possesses some 25,000 residential units with total rental space of around 1.5 million m², the transaction increases the TAG Immobilien group's residential real estate inventory to approx. 56,000 residential units, and the group's annualised rent for 2012 to approx EUR 209 million. DKB Immobilien AG's properties, which collectively were valued at about EUR 1.060 billion as at 31 December 2011, are nearly exclusively located in former East Germany, and mostly in the regions of Thuringia, Greater Berlin and Saxony. Most of the inventory is in a good condition and fully or partly renovated. Vacancy was reported at 10.9% as at 31 December 2011.
TAG and DKB Immobilien AG both focus on the management of residential property, and both have real estate at various locations in former East Germany. Therefore, a merger of their business activities makes sense and opens up potential for synergies and economies of scale, as well as improved operating profitability across the entire group of companies.
The DKB Immobilien AG group of companies' liabilities to banks amount to approx. EUR 800 million. During their negotiations, DKB AG and TAG agreed that all existing non-current liabilities will be renewed through the year 2022 as each of the fixed-interest rate contracts expires, so that TAG is assured of financing for the real-estate inventory for the next ten years. Part of the cash component of the purchase price, which totals EUR 160 million, will be deferred for 18 months by DKB AG. TAG will use the time until this instalment comes due to prepare the process of integrating the companies. DKB Immobilien AG has approx. 275 employees, whose jobs are largely secured by social clauses. Nor will the change of shareholder lead to disadvantages for the tenants of DKB Immobilien AG's properties. TAG has committed to adhere to all existing social clauses that are not affected by the transaction.
Following consolidation, TAG's balance sheet total will be approx. EUR 3 billion.
'This is a transformational transaction for TAG. It strengthens us in the attractive locations Berlin and Central Germany. We welcome the new staff members to our group and look forward to working with them to continue offering our tenants good service. TAG takes a sustainable, longterm approach to residential property management. By taking over DKB Immobilien AG, we have attained a structure and magnitude that lets us do this economically,' says TAG CEO Rolf Elgeti.
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|Company:||TAG Immobilien AG|
|Phone:||040 380 32 0|
|Fax:||040 380 32 390|
|Listed:||Regulierter Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, Stuttgart|
|End of News||DGAP News-Service|