Amsterdam-listed pan-European logistics specialist CTP is making a move into the German logistics property market through an €800m takeover of Deutsche Industrie REIT (DIR).
CTP said it plans to acquire full ownership of and integrate DIR into its business by offering DIR shareholders €24.94 for each share, an amount which represents a sizeable 48% premium to DIR’s recent closing share price of €16.85. DIR is expected to be delisted from the Frankfurt and Berlin Stock Exchanges.
DIR, with 1.6m sqm of lettable space under management, brings 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 creatin 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.
