Adler Real Estate AG on Feb. 19 signed an agreement with Redzone Empire Holding Ltd. to pay 440 New Israeli shekels per share for a 41.04% stake in the Netherlands-based and Tel Aviv-listed property owner and manager Brack Capital Properties NV.
Adler is also planning to launch a public tender offer, priced similarly, to acquire a further 25.8% interest in the real estate company and increase its shareholding to up to 70%. The acquisition volume for the maximum number of shares tendered is estimated to amount to 2.38 billion shekels, Adler said.
Additionally, the senior management of Brack Capital have irrevocably undertaken to tender their respective shareholdings of a combined 5.62% into the tender offer.
Adler will finance the acquisition and the tender offer using existing cash and proceeds from the recent stake sale in Accentro Real Estate AG, as well as proceeds from the sale of its noncore residential assets. Any balance amount will be funded via an in-place bridge loan financing agreement.
Furthermore, the company said it may decide to acquire all remaining shares in Brack Capital in the medium to long term.
Brack Capital holds assets worth a total of approximately €1.6 billion, with a portfolio of more than 11,000 residential units in Germany.
Kempen and J.P. Morgan are serving as a financial advisers to Adler, with the latter also acting as sole provider of acquisition financing.
As of Feb. 16, US$1 was equivalent to about 3.55 New Israeli shekels.