Adler Real Estate AG completed the sale of its 26% stake in conwert Immobilien Invest SE to Vonovia SE for €422 million.

The cash consideration was priced at €16.16 per conwert share. Vonovia also offered conwert shareholders the option of exchanging 1 conwert share for 0.496645 new Vonovia share.

The sale took place amid Vonovia's takeover of conwert Immobilien that recently became unconditionally binding.

Adler plans to use the proceeds from the sale to buy back higher-yielding bank and capital markets debt. CEO Arndt Krienen said buying back higher-yielding debt would bring higher returns than portfolio acquisitions.

Previously, the Austrian Takeover Commission had ruled that Adler and its partners qualified as having acted in concert to gain full control of conwert, a charge which Adler refuted, stating that it was supportive of Vonovia's takeover efforts.