CTP completed the takeover and delisting offer today for DIR (Deutsche Industrie REIT-AG). The transaction adds 1.7 million square meters of GLA to CTP’s European portfolio, and nearly 4 million sqm of new development land. In a single stroke, it brings the German portion of the industrial developer’s portfolio to 15% and makes it the third largest market (by gross asset value) after the Czech Republic (42%) and Romania (21%).
The rough value of the the transaction works out to a staggering €600 million. CTP offered DIR shareholders either €17.12 per share or 1.25 CTP shares for every DIR share. Most chose payment in CTP shares, so the company issued 32 million new shares and the share of the free float of CTP shares grew to 23%.
“We have strategically entered this market at scale, buying significantly below replacement cost and acquiring a major platform in one of the most attractive logistics markets in Europe,” said CTP’s German COO Udo Stöckl. “The portfolio offers many opportunities to add substantial value through upgrades and active asset management. We envisage growth coming from last mile and infill development opportunities around major urban centers, as well as from science and technology parks.”
The portfolio encompasses 90 assets, that CTP plans to manage with 50 people dispersed between four regionally centers. Of the 90, CTP will hold and manage 60 of them, while it will invest further in 12 of them, convert 10 and sell 8. CTP believes the ‘hold and convert’ properties are suitable for highly profitable repositioning into other asset classes (especially residential). The company plans to double its German GLA within five years.
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