Real estate group sells almost 15,000 apartments to investor KKR

The real estate group Adler Group has sold 14,400 residential and commercial units to the American financial investor KKR. Investors were pleased.

The highly indebted real estate group Adler Group has sold another real estate package after selling a residential portfolio to its competitor LEG. The buyer is the US financial investor KKR, as the Adler Group announced on Thursday in Berlin. A contract has been concluded with the investor for around 14,400 residential and commercial units, most of which are located in medium-sized cities in eastern Germany.

The agreed purchase price corresponds to a portfolio valuation of EUR 1.05 billion. According to its own statements, Adler expects net proceeds of around EUR 600 million from the transaction.

Investors in the Adler Group welcomed this next step to deleverage the real estate group before the market on Thursday. On the Tradegate trading platform, this was noticeable with a price jump of 6.5 percent. Shares returned there just above the EUR 12 mark. They had last stood above it about four weeks ago.

Group wants to apologize

The SDax group is currently getting financial air through the sale of shares, and the income is to be used to reduce debt. The company’s goal is to reduce the level of debt to below 50 percent. KKR had already been traded as a possible prospect several weeks ago.

The Adler Group, which emerged from the merger of several companies, has been under pressure on the financial market for some time due to its complex financial structure – this was reinforced at the beginning of October by the allegations by short seller Fraser Perring.

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