ADLER Real Estate AG and Benson Elliot Capital Management enter into a JV to opportunistically dispose of c. 2,300 Residential Units
– ADLER selling c. 2,300 residential units into a joint venture with Benson Elliot Capital Management as announced in April 2018
– Assets sold at 5% premium to ADLER’s book value at a gross asset value of c. EUR 118m
– Benson Elliot acquiring a majority stake of 75% in the joint venture
– ADLER to maintain asset, property and facility management and retain upside potential from future disposals
– Disposal strategy remains in line with ADLER’s de-levering strategy, leading to LTV and operational improvement
Berlin, 27 December 2018 – Following the announcement published on 18 April 2018, ADLER has now successfully entered into a joint venture agreement with Benson Elliot Capital Management.
The Joint Venture entity will focus on disposing of 2,318 units it acquired from ADLER. The Assets transferred into the JV have Gross Asset Value of EUR 117.7m and were transferred into the JV at 5% premium to ADLER’s Book value.
Benson Elliot will have the majority in the JV, with a 75% stake whilst ADLER will hold a 25% participation. Furthermore, ADLER will maintain the roles of asset, property and facility manager until all the assets are ultimately sold to third parties.
ADLER is expected to participate in any upside deriving from future disposals undertaken by the JV.
The sale of these assets to the JV follows the successful completion of the sale of c. 1,400 units to a specialist investor which took place on 17 December 2018. ADLER’s remaining portfolio is deemed to be entirely core.
Tomas de Vargas Machuca ADLER’s Co-CEO said: “This transaction which began with the announcement in April 2018 enables us to dispose of certain assets at premium to book value as well as retain upside potential with the planned disposals from the JV. This transaction also allows us to optimise our overall portfolio which will be very well received by our investors. With this disposal, we have achieved an important year end goal that we had guided. ADLER will continue to improve all its KPI’s and increase its attractiveness towards international institutional investors.”
Maximilian Rienecker ADLER’s Co-CEO commented: “I am pleased with the collaboration with Benson Elliot, an internationally renowned private equity firm with significant experience in German real estate. Part of the proceeds from disposal will be used for debt repayment and therefore leading to the pre-announced LTV reduction. This represents another important stepping stone on our quest to achieve Investment Grade credit rating as soon as possible.”
Your contacts for enquiries:
Head of Investor Relations
ADLER Real Estate AG
Tel: +49 (30) 398018123