Deutsche Annington Falls After Investor Terra Firma Sells Stake

Deutsche Annington Immobilien SE dropped the most since its initial public offering in July after the majority owner said it will transfer shares to its investors and sell a stake for 585 million euros ($801 million).

Deutsche Annington, Germany’s largest publicly traded owner of apartments, fell as much as 7.4 percent to 19.81 euros in Frankfurt trading, reducing the Bochum-based company’s market value to 4.8 billion euros.

Monterey Holdings I Sarl, which is owned by the Terra Firma Deutsche Annington Fund, and CPI Capital Partners Europe GP LLC sold a 12.5 percent stake, or about 30 million shares, for 19.50 euros each, according to a statement today. The owners transferred the rest of their shares, which before yesterday’s announcement made up a stake of about 67 percent, to its investors, according to the statement.

“Overall the sale is a good thing, the share overhang has been massively reduced,” said Torsten Klingner, an analyst at Warburg Research GmbH. “We’ll have to see how the transfer to the investors works out, but I think the free float will be at least 50 percent.”

Terra Firma first sold shares in Deutsche Annington in an initial public offering in July. Deutsche Annington owns about 210,000 German apartments, according to its website. Terra Firma is a private-equity firm based in London.

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