06/08/2007 | Corporate News
Fair Value Immobilien-Aktiengesellschaft attains "pre-REIT" status and offers shares in exchange for units of closed-end real estate funds
108- Public conversion offer to investors in 15 closed-end IC/BBV real estate funds with a volume of up to € 220 million
- Cash capital increase as part of a public purchase offer of up to € 30 million serves intended growth
- Additional offer for investors to sell their fund units
- IPO planned for Q4 2007
Munich – August 6, 2007 – Fair Value Immobilien-Aktiengesellschaft (Fair Value) has, from today, made a public exchange and purchase offer to the more than 13,000 investors in a total of 15 closed-end IC/BBV real estate funds. By taking this step, Fair Value plans to acquire a majority interest in the existing real estate funds with a market value of around € 600 million, thus establishing a Germany-wide, highly diversified portfolio of commercial properties. This portfolio and additional planned investments form the basis for the company's subsequent qualification as a REIT. Fair Value has already applied for pre-REIT status.
As part of the public conversion offer, investors in the total of 15 IC/BVV funds have the opportunity to exchange their fund units for shares of Fair Value free of charge at the units' respective intrinsic value between August 6 and 31, 2007. The shares have an equivalent value of € 10.00. Up to 22,000,000 new no-par value shares are available for this conversion offer.
As part of a purchase offer running in parallel, Fair Value is offering a further up to 3,000,000 new no-par value shares via a cash capital increase. Investors in the 15 IC/BBC real estate funds and select investors can subscribe for these shares, also at a subscription price of € 10.00 per share. As a result of the capital increase, gross proceeds from the issue of up to € 30 million will accrue to Fair Value if the placement is successful. The company will use these fund to invest in new, attractive commercial properties. In addition, investors in the 15 closed-end IC/BBV real estate funds can sell their units to Fair Value as part of a sale offer. As an alternative, they can continue their participation as previously.
Once the transaction has been successfully concluded, Fair Value intends to go public in the fourth quarter of 2007. After the IPO, investors can trade in shares of Fair Value daily. At the same time, Fair Value will drive its operating business. In this regard, it will specifically expand its real estate portfolio in select segments and regions. It will expand its portfolio by directly acquiring properties as well as by acquiring additional units in investment funds. Fair Value plans to successively expand its portfolio volume via targeted asset and portfolio management.
The securities offering prospectus approved by the German Financial Services Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) can be downloaded at www.fair-value-reit.de.
2007
