Covivio to launch takeover offer for Godewind Immobilien AG, a EUR1.2 bn German
office real estate company
Acquisition of 35% of the share capital of Godewind Immobilien secured
Today, Covivio published its decision to launch a voluntary public takeover
offer for all shares in Godewind Immobilien AG ("Godewind"), a listed office
property company active in Germany. The offer is launched for EUR 6.40 per
share and has the full support of both the Management Board and the Supervisory
Board of Godewind. Covivio has secured up to approx. 35% of Godewind's fully
diluted share capital. Following the closing of this major investment, the
company will have critical mass in the German office real estate market with a
total portfolio of EUR2.1 Bn(1).
Operating in Germany since 2005 with a local team of 570 people, Covivio has
been historically active in the residential and hotel sectors. Building on its
expertise and the success of its development pipeline in Europe, Covivio
initiated an offices activity in Germany in 2018. Already the owner of EUR280M
of offices and EUR600M of development projects mainly in Berlin, Covivio is now
accelerating its investments in this market.
This transaction will enable Covivio to acquire a core portfolio of 10 offices
buildings (290,000 m2) valued at EUR1.2 Bn and located in Frankfurt (40% of the
portfolio), Düsseldorf (28%), Hamburg (24%) and Munich (8%). These 4 cities
are among the Top 10 biggest European offices markets alongside Paris, Berlin
and Milan where Covivio is already active.
A transaction supported by Godewind's Management, Supervisory Board and key
shareholders The offer will be conducted through Covivio X-Tend AG, a wholly
owned indirect subsidiary of Covivio. Today, Covivio, Covivio X-Tend AG and
Godewind entered into a Business Combination Agreement, which contains the
principal terms and conditions of the offer and the parties' mutual intentions
and understandings. On the basis of the business combination agreement, the
Management Board and Supervisory Board of Godewind welcome and support the
Furthermore, Covivio has secured up to approx. 35% of Godewind's fully diluted
share capital(2). It entered today into definitive agreements with various
shareholders of Godewind, who are selling at a price of EUR6.40 per share,
subject to anti-trust conditions. Additionally, Godewind has committed to
tendering all of its treasury shares into the offer.
Covivio currently intends to conduct the offer in a fashion that satisfies the
requirements for a delisting under German law and has entered into
corresponding contractual arrangements with Godewind.
(1) EUR1.5 Bn of existing assets and EUR600 M of developments (valued at cost)
(2) Including 3% from CEO's - to-be-exercised-stock options which will be
tendered during the offer
Regulatory clearance is expected to be obtained prior to the commencement of
the tender offer which will commence with the acceptance period by end-March.
The end of the public offer and the delisting by the Management are currently
expected to occur by end-May 2020.
A high-quality portfolio located in Germany's most dynamic cities
The offices market in Germany has some of the strongest fundamentals in Europe.
Since 2014, take- up in the 7 major German cities has been growing by 6% per
year, while immediate supply has been shrinking by 17% per year. Low vacancy
rates, 2% in Berlin and Munich, 3% in Hamburg and less than 6% in Frankfurt and
Düsseldorf, combined with available supply under construction representing on
average one year of take-up, are fueling rental growth (+4% expected in
Covivio will deploy asset management work on this portfolio focused on reducing
vacancy rate and increasing rents. The expected investment yield is 4.7%
following current vacancy reduction (~8%; 4.3% immediate yield) and potentially
>5.0% given the value creation levers (reversionary potential above 10% and a
potential 15,500 m2 development in Munich).
Working, travelling, living: Covivio deploys its know-how in Europe
After completion of this transaction, Covivio will own an offices portfolio in
Germany with a critical size of EUR2.1 Bn(4), spread across the main German
cities: Berlin (38% of assets by value, including the development project of a
mixed-use tower of 60,000 m2 at Alexanderplatz), Frankfurt (23%), Düsseldorf
(16%), Hamburg (14%) and Munich (7%).
"Covivio is continuing its European development and is now reaching an
important step in its growth in Germany. With this acquisition, Covivio creates
a EUR2.1 Bn offices platform located in Germany's most dynamic cities. As in
France and Italy, Covivio intends to contribute to the design of the city of
tomorrow and to offer high-performance, flexible and service-oriented spaces",
underlines Christophe Kullmann, Chief Executive Officer of Covivio.
To find out more, click here to access the press release of Covivio's 2019
(3) Sources: Colliers and JLL
(4) Current value of existing assets and total cost of development projects
Detail of the portfolio
CITY ASSET SURFACE SPLIT PER CITY
Frankfurt Airport Center 48 439 m2
Frankfurt City Gate 22 186 m2 40%
Frankfurt Y2 30 935 m2
Frankfurt ComConCenter 16 264 m2
Dusseldorf Herzog Terassen 55 149 m2 28%
Dusseldorf Airport Business Center 13 069 m2
Hamburg Zeughaus 43 521 m2 24%
Hamburg Pentahof 25 345 m2
Munich Sunsquare 17 917 m2 8%
Munich Eight Dornach 17 612 m2
290 438 m2
Thanks to its partnering history, its real estate expertise and its European
culture, Covivio is inventing today's user experience and designing tomorrow's
A preferred real estate player at the European level, Covivio is close to its
end users, capturing their aspirations, combining work, travel, living, and
co-inventing vibrant spaces.
A benchmark in the European real estate market with EUR24 Bn in assets, Covivio
offers support to companies, hotel brands and territories in their pursuit for
attractiveness, transformation and responsible performance.
Build sustainable relationships and well-being, is the Covivio's Purpose who
expresses its role as a responsible real estate operator to all its
stakeholders: customers, shareholders and financial partners, internal teams,
local authorities but also to future generations and the planet. Furthermore,
its living, dynamic approach opens up exciting project and career prospects for
Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 -
COV) and on the MTA market (Mercato Telematico Azionario) of the Milan stock
exchange, are admitted to trading on the SRD, and are included in the
composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100
indices, in the "EPRA" and "GPR 250" benchmark European real estate indices,
EPRA BPRs Gold Awards (financial + Sustainability), CDP (A), Green Star GRESB
and in the ESG FTSE4 Good, DJSI World & Europe, Euronext Vigeo (World 120,
Eurozone 120, Europe 120 and France 20), Euronext(r) CDP Environment France EW,
Oekom, Ethibel, Sustainalytics and Gaïa ethical indices.
Covivio is rated BBB+/Stable outlook by Standard and Poor's.
Financial part: BBB+ / Stable outlook by Standard and Poor's
Extra-financial part: A1+ by Vigeo-Eiris
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