European industrial developer CTP has announced its intention to buy German industrial real estate owner Deutsche Industrie REIT-AG (DIR). The value of the transaction will be around EUR 800 million (over CZK 20 billion) and the CTP portfolio will expand by 1.6 million sqm of leasable space to 3.9 million sqm of land. The agreement has yet to be approved by DIR shareholders, but more than 50 percent have now committed to the transaction, according to CTP.
CTP plans to withdraw the German company DIR from the stock exchange and take full ownership of it. It offers the shareholders of the German company DIR that they can exchange each of their shares for 1.25 new CTP shares, or they can also choose to pay in cash in the amount of EUR 17.12 per share.
“Germany as the economic engine of Europe is a basic pillar for CTP tenants and with it the largest business partner of all markets in which we operate. After the Czech Republic and Romania, it will be the third most important market in CTP’s portfolio,” said Remon Vos.
The DIR portfolio in Germany consists of 89 properties located in 12 of the 16 German Länder, including the Rhineland-Palatinate, Munich, Stuttgart, Hanover, Berlin and the northern port areas. The company’s premises are now leased to a total of 665 tenants, as well as the logistics company DHL, tire manufacturer Brigestone and others.
After adding the new premises with the existing CTP areas, the company’s portfolio will exceed eight million square meters of leasable space with an occupancy rate of 94 percent. At the same time, the total value of the CTP portfolio should climb to approximately EUR 7.2 billion (over 185 billion crowns) after the merger of the two companies.
