French listed company Covivio announced that it will launch a voluntary public takeover offer for 100% of the share capital of Godewind Immobilien AG (Godewind), a listed German office company. Covivio has already secured approx. 35% of Godewind Immobilien AG share capital.
Under the terms of the offer each shareholder will receive EUR 6.40 per share in cash. As part of the transaction, Covivio and Godewind have also agreed on a business combination agreement (“BCA”) governing future strategy, offer process and governance of Godewind. The Godewind Management and Supervisory Board welcome and support the offer.
”With closing of the offer for this €1.2 billion portfolio Covivio will enjoy a critical size on the German office market, with a total German office portfolio reaching €2.1 billion, said Covivio in a statement.”This contemplated acquisition would allow Covivio to acquire a 10-office-building Core portfolio (290,000 m²) and one development project, located in Frankfurt (40% of the portfolio), Düsseldorf (28%), Hamburg (24%) and Munich (8%).”
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Covivio currently owns €280 million of offices and €600 million of development projects in Berlin. Covivio will increase its German office investments to €2.1 billion platform (at development delivery), centered in the main German cities: Berlin (38%), Frankfurt (23%), Düsseldorf (16%), Hamburg (14%) and Munich (7%).
The German office market boasts some of strongest fundamentals in Europe. Since 2014, the Big 7 cities takeup has soared by 6% annually while the immediate offer has decreased by -16% annually leading to an offer shortage.
The very limited vacancy – 2% in Berlin and Munich, 3% in Hamburg and below 6% in Frankfurt & Düsseldorf – combined with a limited available surface under construction – representing on average one year of take-up – are fuelling rent increases (+4% expected in 2020).