The Amsterdam-listed CTP moved a step closer to its full takeover of German logistics group Deutsche Industrie REIT (DIR) when it received backing from 83% of shareholders following the closing of the initial acceptance period.
CTP is making an €800m public takeover offer for DIR which it plans to delist and merge into its own operations. DIR's management and supervisory boards have already approved the offer, which sees CTP offering either a cash consideration of €17.12 or a share consideration of 1.25 CTP shares for each tendered DIR share.
Alternatively CTP is offering DIR shareholders five new CTP shares for each four DIR shares, valuing DIR at €24.94 per share, and the company at €800m. DIR shareholders who have not yet accepted the offer can tender their DIR shares during the extended acceptance period up until 25th January 2022.
CTP said that the deal "is expected to provide a springboard to unlock further growth in Germany and beyond and strengthen CTP’s position as continental Europe’s largest listed owner, operator and developer of logistics and industrial properties".
DIR, with 1.6m sqm of lettable space under management, will bring in a further €800m of yielding assets to CTP’s portfolio of owned assets of €6.4bn. The deal will create a new combined portfolio of €7.2bn.
Traditionally the Prague-based CTP has had its main focus on development and asset management in the CEE region. DIR has 665 tenants across 89 assets spread widely across Germany.
Remon Vos, founder and CEO of CTP, said CTP is delivering on the pan-European active growth strategy it outlined during its IPO earlier this year.
“Through our proposed acquisition of Deutsche Industrie REIT-AG, we're creating a meaningful entry into the German logistics and industrial real estate market. We are buying a portfolio of scale, below replacement value, where we believe we can increase rental values, improve operating margin, and realise redevelopment potential.” In other words, improve its sustainability and manage it to a decent ESG-certification, while adding to its own EPRA earnings per share.
CTP recently raised €1bn through the issue of a Green Bond, in its third visit to the bond markets this year, which was more than three times oversubscribed. The bond, like the earlier bonds, was structured in two tranches, of five years and ten years, of €500m each. The five-year is paying a 0.625% coupon, with the ten-year tranche paying a fixed 1.50%. CTP made a public commitment two years ago to upgrade and certify its entire portfolio of logistics and industrial project to a level of BREEAM Very Good standard and above.
