07/08/2015 | Corporate News
Further information on the possible merger of Fair Value REIT-AG with DEMIRE Deutsche Mittelstand Real Estate AG
314Munich, 06 August 2015 – On 31 July 2015, DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE“) announced its intention to submit a voluntary public takeover offer to the shareholders of Fair Value REIT-AG (“Fair Value“). For the purpose of the merger, Fair Value and DEMIRE have signed a business combination agreement (BCA). The merger pursues the target to build the leading commercial player in German secondary locations.
From the perspective of both companies, the essential and value creating aspects of the merger are:
· Creating a leading € 1.0 billion commercial real estate player in Germany focused on secondary locations
· Levering integrated asset- and portfolio management towards combined economies of scale and portfolio optimisation
· Combining Strong real estate sourcing networks and demonstrable integration track-record
· Defensive long-leased portfolio and strong tenant structure supportive of additional debt funding costs reduction
· Strengthening balance sheet profile supported by expected delivering trajectory towards an LTV of 50-60%
· Increasing capital markets presence and improved access to financing markets
· Implementation of “Prime-Standard” adequate corporate governance structures into combined company
The management board of Fair Value welcomes the opportunity to take the next growth step with the collaboration of DEMIRE and appreciates to build the leading commercial player in German secondary locations.
A presentation on the possible merger of Fair Value and DEMIRE has been published on the Fair Value website under Investor Relations, Presentations (www.fvreit.de/investor-relations/).
2015
