PATRIZIA Immobilien AG acquires investment company LB Immo Invest GmbH
PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) today signed the purchase agreement for the acquisition of the investment company LB Immo Invest GmbH. The seller is HSH Real Estate AG, a subsidiary of HSH Nordbank AG.
The parties have agreed not to disclose the purchase price. The acquisition of the profitable LB Immo Invest represents an important step in the sustained expansion of the service segment in which PATRIZIA is striving for above-average growth in order to maintain its income situation.
The real estate investment company LB Immo Invest GmbH currently manages 13 special funds and is the eighth largest German provider of specialized real estate funds in terms of assets under management with a net fund volume of EUR 1.5 billion as of October 31, 2010. Although the funds primarily invest in office and commercial real estate, the special funds comprising some 180 properties also include nursing homes and hotels. As well as Germany as its main location, LB Immo Invest is also invested in France, the UK, the US, Scandinavia and the Benelux countries. The institutional investor customer group is primarily made up of savings banks, insurance companies and pension funds.
Since 2007, PATRIZIA has been strengthening its range of services for institutional customers with its own investment company. PATRIZIA Immobilien Kapitalanlagegesellschaft mbH (KAG) invests in residential real estate in Germany and Europe. Five funds with a target volume of EUR 1.6 billion have now been launched, EUR 613 million of which has been invested to date. By acquiring LB Immo Invest, PATRIZIA is responding to the growing demand for indirect investments: As established platforms, LB Immo Invest and PATRIZIA Immobilien KAG serve to complement each other and can now offer their customers investment opportunities in both residential and commercial real estate in Germany and internationally.
LB Immo Invest GmbH will continue to operate under its existing name with its head office in Hamburg and will be fully consolidated as a 94.9% subsidiary of the PATRIZIA Group with effect from January 2011. The Management Board expects the acquisition to make a contribution to consolidated EBT for the 2011 and 2012 fiscal years of EUR 3.5 million and EUR 5.0 million respectively after deduction of transaction-related financing costs. The acquisition of LB Immo Invest was conducted through the use of around 40% of equity via a bank loan that will be fully repaid till March 31, 2015 from surplus shares of LB Immo Invest.