Fortress to Cut Stake in German Landlord Gagfah
Fortress, a private-equity and hedge-fund manager, sold 20 million Gagfah shares to reduce its holding to 48.8 percent, according to a statement today. Gagfah sold 10.5 million treasury shares and 9.5 million new shares for 8.85 euros each, raising about 176 million euros ($226 million).
Fortress previously owned about 61 percent of Gagfah, according to the statement. The New York-based firm’s assets under management were $55.6 billion as of March 31, a 4 percent increase from the end of 2012, according to a May 2 report.
“Gagfah is on track to become a more conventional residential real estate company,” Andre Remke, an analyst at Baader Bank with a buy rating on the stock, said in a research note today. The company “can now refocus on operational performance and investments,” he said.
The Luxembourg-based company said yesterday it will resume dividend payments in 2015. The last payment was in 2011. Gagfah said last month it was issuing a 2 billion-euro commercial-mortgage backed security to pay most of its debt.
Gagfah also reiterated a forecast that funds from operations will rise by 5 percent to 10 percent per share this year. The company is targeting an increase of 7.5 percent to 12.5 percent for 2014.
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