IVG sells OFFICEFIRST to Blackstone
- Blackstone acquires all shares in OFFICEFIRST Immobilien AG
- Purchase price reflects fair value of OFFICEFIRST
- Transaction planned to close in first quarter of 2017
Bonn/Frankfurt, 8 November 2016 – IVG Immobilien AG is selling its subsidiary OFFICEFIRST Immobilien AG to Blackstone Real Estate Partners Europe IV ("Blackstone"). The contractual agreements for the sale were signed in Frankfurt. The purchase price and additional payment components adequately reflect OFFICEFIRST’s net asset value (NAV). The transaction is to close in the first quarter of 2017. It has been agreed to maintain confidentiality with regard to the contractual details.
“In roughly two years, we have fundamentally restructured IVG’s real estate business and, by spinning off and refinancing the core portfolio in OFFICEFIRST Immobilien AG, successfully created a standalone platform ready for the capital market that holds and manages an attractive commercial property portfolio,” explained Dietmar P. Binkowska, CEO of IVG Immobilien AG, after the contract signing. “In Blackstone, OFFICEFIRST gains an owner and partner ideally suited to driving forward the strategic development of the business for the good of the Company,” Binkowska continued.
Anthony Myers, Head of European Real Estate at Blackstone, said: "We are delighted to make another substantial investment in Germany, where we are focused on high-quality, well-located assets in the country's largest cities. OFFICEFIRST meets that investment criteria, and we are excited to continue working with OFFICEFIRST in driving value across its portfolio."
Early October, OFFICEFIRST cancelled its IPO until further notice. Shortly thereafter, Blackstone provided an offer to take over the real estate company, which corresponded with IVG management’s value expectations.
OFFICEFIRST Immobilien is a spin-off comprising IVG’s strategic core portfolio. With 97 properties worth some €3.3 billion (as of the 30 June 2016 balance sheet date), OFFICEFIRST Immobilien has one of the largest portfolios of office properties in the attractive German real estate market. In the transaction, Blackstone is acquiring all shares in OFFICEFIRST Immobilien AG.
About IVG Immobilien AG
IVG Immobilien AG is a financial holding which focuses on the exercise of shareholder rights ensuing from equity interests. As sole shareholder or general partner, it holds three companies which are corporate entities in their own right and which operate independently of each other:
- With currently 97 properties adding up to a total value of some €3.3 billion, OFFICEFIRST Immobilien AG has one of the largest portfolios of office properties in Germany.
- TRIUVA Kapitalverwaltungsgesellschaft mbH is a leading provider and manager of structured real estate products for institutional investors in Germany with assets under management of some €9.7 billion.
- STORAG ETZEL GmbH is a company in the energy logistics sector which operates more than 70 underground storage reservoirs for energy sources such as oil and gas at its Etzel site in East Friesland, and is the only independent provider of underground storage reservoirs in Germany.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $102 billion in investor capital under management. Blackstone’s real estate portfolio includes hotel, office, retail, industrial and residential properties in the US, Europe, Asia and Latin America. Major holdings include Hilton Worldwide, Invitation Homes (single family homes), Logicor (pan-European logistics) and prime office buildings in the world’s major cities. Blackstone real estate also operates one of the leading real estate finance platforms, including management of the publicly traded Blackstone Mortgage Trust.
Media contact IVG Immobilien AG
T: +49 (0) 228 – 844 133
M: +49 (0) 151 1500 2829