Brookfield Asset Management will make a voluntary public takeover offer for the acquisition of all outstanding shares in Alstria Office REIT-AG that it presently does not own for €19.50 per share in cash.
Alstria Office REIT-AG has signed an investment agreement with Alexandrite Lake Lux Holdings S.à r.l. (Bidder), a company controlled by real estate private funds of Brookfield Asset Management.
Alstria said the offer values the company at an equity value of €3.5bn and an implied gross asset value of €5.0 bn.
”The offer represents a premium of 6.8% to last reported EPRA NTA (€ 18.26 per share as of September 30, 2021) and 17.3% to the closing share price on November 3, 2021 (€ 16.62),” said the company in a statement.
Alstria office REIT-AG is a German real estate platform with a high-quality office portfolio across six of Germany’s seven core investment markets, including Hamburg, Frankfurt, Duesseldorf, Berlin and Stuttgart.
As of September 30, 2021, Alstria Office REIT-AG’s real estate portfolio comprised 111 properties with a lettable area of 1.5 million square meters and a market value of €4.7 billion.
”The office sector is going through a fundamental transformation, driven among others by evolving occupier demand and decarbonization needs,” said Olivier Elamine, CEO of Alstria. ”There is substantial value for the Company to be anchored with a sophisticated shareholder with a longer-term investment horizon than public equity usually allows for, notably during a phase of substantial investment. Brookfield shares our views and understanding of both the challenges and opportunities that will be offered by the market transformation.”
”Through this offer, we will provide alstria with a strong and reliable strategic partner that understands its business and can deliver the stability needed to support the Company’s next development stage,” said Brad Hyler, Managing Partner and Head of European Real Estate at Brookfield.
”As a long-term shareholder of alstria, we have a strong relationship with the Management Board and we are excited about the opportunity to combine alstria’s prime German office portfolio, established operating platform and market-leading ESG credentials, with Brookfield’s global real estate operating expertise and vast real assets ecosystem, to enable the business to realize its full potential,” he added.