Conwert Immobilien Invest SE (CWI), an Austrian landlord, agreed to buy a majority stake in Germany’s KWG Kommunale Wohnen AG (BIW) to more than double its apartments in the country. KWG’s shares rose to the highest since May 2008.
Conwert will buy about 60 percent of the shares in Hamburg- based KWG, which owns 10,000 apartments in cities such as Berlin and Dusseldorf, the company said in a statement today. The acquisition will boost its German holdings by 66 percent to about 24,500 homes, it said.
“Conwert has a lot of liquid funds that will give us much better opportunities to grow our portfolio,” Stavros Efremidis, chief executive officer of KWG, said in a phone interview. Once the merger is complete, Efremidis will run Conwert’s German operations.
The companies did not disclose the purchase price. KWG has a market value of about 94 million euros ($124 million). Conwert said the acquisition values KWG’s properties at about 620 euros a square meter. KWG climbed as much as 11.75 percent in Frankfurt trading to 6.84 euros. Conwert was up 2.9 percent at 9.75 euros in Vienna, the highest in more than a year.
KWG agreed to buy 2,908 residential and commercial units in cities such as Berlin and Bochum for about 89.5 million euros, the company said in a statement yesterday. The properties were valued at about 443 euros a square meter. KWG valued its properties at 758 euros a square meter as of June 30, according to statement at the time.
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