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CORESTATE acquires majority interest in ALTA FIDES AG via subsidiary and announces mandatory offer
GOETHE INVESTMENTS S.à r.l. will make a mandatory offer according to Section 35 (2) of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz, WpÜG) for the remaining shares of ALTA FIDES Aktiengesellschaft für Grundvermögen and is expected to offer a compensation of EUR 15 in cash for each outstanding share of ALTA FIDES Aktiengesellschaft für Grundvermögen. The intended offer includes a premium of approximately 10 % on the weighted average stock market price for the last three months prior to the announcement of the acquisition of the qualified majority, which was made today. Depending on how many free-float shareholders accept the mandatory offer, the fund will invest up to a total of EUR 100 million in acquiring the majority interest in ALTA FIDES.
Ralph Winter, Chairman of CORESTATE Capital AG, commented on the rationale for the transaction, stating that the increase in the interest in ALTA FIDES is an ideal supplement to the fund's portfolio. ALTA FIDES has recognized competence as a project developer for landmarked, top-quality residential properties and offers interesting growth perspectives in its "Campus" division, which has specialized in developing "lifestyle student apartments".
"Acquiring a qualified majority in ALTA FIDES is the next logical and consistent step after the fund invested into a minority interest in this company in December 2007 (acquisition of 14.2%), in particular in order to develop the growth potential offered by the student homes asset class for our investors. ALTA FIDES is the first mover in this segment and leads the German market.
The company is already present with project developments in seven university cities. The pipeline for additional student housing assets in Germany is well filled. By acquiring a majority interest in ALTA FIDES, we can enjoy rapid entry to the market and the associated significant market shares in a fast growing, highly attractive new real estate segment thanks to ALTA FIDES' well-established platform," commented Ralph Winter.
CORESTATE Capital AG's experienced management team will use its network to further develop the market and to support the ambitious growth plans of the Managing Board of ALTA FIDES Aktiengesellschaft für Grundvermögen.
The transaction is currently expected to be completed in the fourth quarter of 2008.
Further information on the offer is available online at: www.goethe-transaction.de
About GOETHE INVESTMENTS S.à r.l.
GOETHE INVESTMENTS S.à r.l. is a Luxemburg-based, wholly owned subsidiary of the CORESTATE German Residential Limited fund. The fund invests in German residential real estate, either directly or via equity interests. Its investors include international, institutional investors such as Morley and Schroders as well as European pension funds and insurance companies advised by ING Real Estate Select and CBRE Investors.
The fund is managed by CORESTATE Capital AG, Zurich.
As a private equity real estate investor, the CORESTATE Group has invested more than EUR 1.2 billion in the German real estate market through mid-2008.
In-depth knowledge of the real estate market, a national acquisition network with more than 2,000 partners, a highly effective asset management platform, and its established knowledge of the international capital markets are the main pillars of CORESTATE's business model.
- As a private equity investor, CORESTATE acquires residential and commercial properties in Germany, either directly or via participating interests.
- As a co-investor, CORESTATE invests in real estate portfolios and takes on the asset management for its partners - either fully or partially.
- As an asset manager, CORESTATE generates attractive returns for its investors and business partners by actively managing the real estate portfolio.
- As a fund manager, CORESTATE offers its investors investment vehicles that open up the opportunities the German real estate market offers for institutional investors via regular disbursements and increased value.
Further information can be found online at www.corestate-capital.ch .
About ALTA FIDES Aktiengesellschaft für Grundvermögen
Stuttgart-based ALTA FIDES Aktiengesellschaft für Grundvermögen was established in 2000 and its activities mostly focus on residential real estate. The company is listed in the Frankfurt Stock Exchange's Prime Standard, and its operating business focuses on buying, renovating and selling exclusive, protected residential properties (Project Development), trading with and holding and managing top-quality residential properties in 1A locations in Germany (Trading and Portfolio Management), managing mortgage-backed bank loans and developing student accommodation as a new asset class on the German real estate market (CAMPUS Real Estate).
Further information can be found online at www.altafides.de .
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