German property group TLG prepares 470 mln offer for peer WCM -sources (updated)

WCM Beteiligungs und Grundbesitz AG

10/05/2017 14:22

(Adds expected valuation, background) 
    By Alexander Hübner and Arno Schuetze 
    FRANKFURT, May 10 (Reuters) - German property group TLG 
Immobilien  TLGG.DE  is preparing a 470 million euro takeover 
offer for peer WCM  WCMKk.DE  as it seeks to buy stakes from the 
company's largest shareholders, three people close to the matter 
said.  
    TLG is close to striking a deal to buy a 26 percent stake in 
WCM from DIC Asset  DICn.DE  for about 3.55 euros a share, as 
well as a 14 percent stake belonging to the Ehlerding family, 
the people said.  
    At that price, WCM's equity would be valued at 470 million 
euros.  
    WCM's shares rose 9 percent by 1247 GMT, while TLG's shares 
were flat. 
    Following the acquisition of these stakes, TLG would launch 
an offer to buy out all remaining shareholders with a view of 
buying at least 75 percent, they said.  
    The deal may be announced as early as this week, they said, 
but added that it could yet still fall apart. 
    TLG, DIC and WCM declined to comment, Ehlerding was not 
immediately available. 
    While Germany's property market has seen a flurry of deals 
in the residential and office sectors, few have been struck in 
commercial real estate. 
    TLG, which manages formerly state-owned eastern German 
offices, shops and hotels was privatised in 2012 and listed on 
the stock exchange in 2014.  
    It has since expanded to western Germany and earlier this 
year hiked its capital to fund acquisitions of German office and 
retail properties. urn:newsml:reuters.com:*:nASM00093M 
    WCM's portfolio comprises of 57 assets throughout Germany 
with a market value of more than 796 million euros, mainly 
buildings housing supermarkets and DIY retailers as well as 
office space, according to its website. 
    Investors have been attracted to Germany's real estate 
sector in recent years by the reliable income stream that 
property projects typically offer and by higher yields than 
German sovereign bonds. Investors have also been betting on 
rising property prices in Europe's largest economy.  
    "I expect further consolidation between listed commercial 
real estate groups," DIC Asset CEO Aydin Karaduman had told 
Reuters in 2016. 
 
 (Reporting by Alexander Hübner and Arno Schuetze; Editing by 
Maria Sheahan and David Evans) 
 ((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters 
Messaging: arno.schuetze.reuters.com@reuters.net)) 
 
Keywords: WCM M&A/TLG IMMOBILIEN