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Adler Real Estate building project in Berlin Mitte
Photo: Stefan Boness / IPON / imago images
The highly indebted real estate company Adler Group has sold other apartment packages.
The company has sold around 14,400 residential and commercial units, most of which are located in medium-sized cities in eastern Germany, to the private equity investor KKR.
The move was well received on the stock exchange, and the Adler Group's share rose sharply.
According to the company, KKR is paying EUR 1.05 billion for the portfolio.
The Luxembourg-based SDax group, which has got into trouble, is currently finding room for itself through the sale of shares, and the proceeds are to be used for debt relief.
The aim of the company was to reduce the level of debt to below 50 percent.
With the sale to KKR this would be achieved, it was said.
The Adler Group, which emerged from a merger of Ado Properties, Adler Real Estate and the Berlin project developer Consus Real Estate, has been under pressure on the financial market for some time due to its complex financial structure.
This was reinforced in early October by the allegations of the short seller Fraser Perring, which Adler sharply rejected (read more about it here).
The share has since recovered from the previous drop in the stock market to around EUR 8.60.
On Thursday, the paper climbed in response to the sale to KKR by 4.75 percent to 11.90 percent.
With the sale to KKR and its competitor LEG, the Adler Group is drawing a line under its disposal program for the time being.
This means that the sale process of “real estate that is not in line with strategy” is largely complete, it said.
The company wants to focus more on residential real estate in major German cities.
It was only in December that Adler therefore finalized a major deal with the sale of more than around 15,600 apartments and commercial units with its competitor LEG.
In October, Germany's largest real estate group Vonovia secured the right to acquire a 13.3 percent stake in Adler through an agreement with the major Adler shareholder Aggregate Holdings.
hej / Reuters
