Dec. 21 (Bloomberg) -- Conwert Immobilien Invest SE, an Austrian landlord, agreed to buy a majority stake in Germany’s KWG Kommunale Wohnen AG to increase its apartment holdings in the country by 66 percent. KWG’s shares rose to the highest in more than four years.
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 increase its German properties to about 24,500, Conwert 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 didn’t disclose the purchase price. KWG has a market value of about 96 million euros ($127 million).
Conwert said the acquisition values KWG’s properties at about 620 euros a square meter. KWG climbed as much as 17 percent in Frankfurt trading. The stock was up 9.5 percent at 6.70 euros as of 1:05 p.m. Conwert rose 4.2 percent to 9.87 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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