Germany’s Aroundtown and TLG Immobilien are examining a merger to create a pan-European commercial real estate market leader worth 25 billion euros ($28 billion), reported Reuters.
TLG Immobilien on Sunday said it bought a 9.99% stake in rival Aroundtown from its largest shareholder, Avisco Group for about 1.02 billion euros, adding the deal would immediately add to its funds from operations per share.
TLG, which had properties worth 4.6 billion euros in its portfolio at the end of June, also entered into an option to acquire up to 4.99% additional stake in Aroundtown from Avisco that could be exercised prior to the end of February 2020.
“Today’s announcement is the first step to enable the potential creation of a pan-European commercial real estate market leader, focused on Germany and the Netherlands and geared towards offices and hotels, which are the most attractive segments in commercial real estate,” Avisco said in a statement. After this sale, its stake in Aroundtown was reduced to 17%.
Full Content: Reuters
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