Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Wiener Boerse  >  BUWOG Group GmbH    BWOA   AT00BUWOG001

BUWOG GROUP GMBH

(BWOA)
SummaryChartsNewsCalendarCompany 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Vonovia offers $1.1 billion for Sweden's Victoria Park, trumping Starwood

share with twitter share with LinkedIn share with facebook
share via e-mail
05/03/2018 | 04:35pm EDT
New Vonovia SE headquarters in Bochum

FRANKFURT/BERLIN (Reuters) - Germany's Vonovia made a $1.08 billion (0.79 billion pounds) cash offer on Thursday for Swedish real estate company Victoria Park AB, outbidding Starwood Capital Group and stoking a scramble for assets in Europe's hot property market.

Vonovia said it was offering 9.56 billion Swedish crowns ($1.08 billion) for Victoria Park, which owns 14,000 units in Stockholm, Gothenburg and Malmo

Low interest rates have fuelled interest in real estate among investors searching for higher returns and companies looking to bulk up.

Since going public in 2013 Vonovia has grown into Germany's biggest residential property company by swallowing up smaller rivals and has expanded outside its home market, snapping up Austria's Conwert and Buwog.

The German firm said it was attracted by Sweden's regulated rental market and a fragmented housing sector ripe for consolidation.

"We are very excited about entering the Swedish market for the first time, and we are particularly happy that we identified Victoria Park as a company that follows the same business principles," Vonovia CEO Rolf Buch said.

Despite increased competition for portfolios, Buch said he expected rising demand for apartments as people flocked to big cities to support prices and rents, especially in Germany and Sweden where there remained a lot of catch-up potential.

Vonovia said its offer represented an 11.8 percent premium to Starwood's rival offer, which valued the company at roughly 8.68 billion crowns.

Buch told journalists he was in "good talks" with Starwood and that it would not come to a bidding war. Victoria Park's board had recommended shareholders reject Starwood's approach, saying it did not reflect the company's value. On Thursday, its bid committee voiced support for Vonovia's offer.

Investors representing 37 percent of Victoria Park's voting capital have agreed to accept Vonovia's offer, it said. The offer runs until around June 18, and was contingent on securing more than 50 percent of voting shares.

Vonovia, which is offering 38 crowns in cash for Victoria Park's common shares, after the market close raised 995.8 million euros in a placement of 26 million new shares, funds which it said would be used in connection with the takeover.

Victoria Park closed up 9.7 percent at 38.50 crowns while Vonovia's stock closed down 2.6 percent at 40.81 euros.

INFLUX CITIES

Sweden has been an attractive property market for the past two decades, as property prices rose quickly, fuelling fears of a housing bubble. But prices have dipped in recent months on a surge in building and tougher mortgage repayment rules aimed at curbing high household debt.

Vonovia's latest foreign venture is part of a European expansion drive. In March, it completed a 5.2 billion euro deal to buy Austrian peer Buwog and has flagged interest in further cross-border acquisitions in Sweden or the Netherlands.

Rules forbidding listed companies owning social housing remain an obstacle to its ambitions in France.

Rival Starwood has also been seeking to expand, making offers for minority stakes in Austria's CA Immo and Immofinanz as it seeks assets in central and eastern Europe. Immofinanz has rebuffed Starwood's offer as too low.

Vonovia's Buch said he believed listed companies would have the upper hand over private equity because of their scale and lower cost of capital.

Separately, Vonovia also reported results for the first quarter and raised its 2018 guidance for funds from operations (FFO 1), a measure of recurring free cash flow, to 1.03 billion to 1.05 billion euros from 960 to 980 million euros.

It said it expected the Victoria Park deal to be accretive to core profit by 2019.

(Additional reporting by Hans Seidenstuecker; Editing by Jon Boyle and Edmund Blair)

By Tom Sims and Caroline Copley

Stocks mentioned in the article
ChangeLast1st jan.
CA IMMOBILIEN ANLAGEN AG 6.70% 24.7 End-of-day quote.0.41%
VICTORIA PARK AB 0.00%End-of-day quote.6.15%
VONOVIA SE 5.26% 45.01 Delayed Quote.-6.23%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on BUWOG GROUP GMBH
2018BUWOG AG : Squeeze-out of minority shareholders of BUWOG AG registered
EQ
2018BUWOG : Start of construction for sustainable BUWOG project ERnteLAA
PU
2018BUWOG : MARINA TOWER wins the "European Property Award" in London
PU
2018BUWOG AG : Dividend announcement
EQ
2018BUWOG AG : Results for the first three months of the abbreviated 2018 financial ..
PU
2018BUWOG AG : Release of a Financial report
EQ
2018BUWOG AG : Results for the first three months of the abbreviated 2018 financial ..
EQ
2018BUWOG AG : quaterly earnings release
2018BUWOG : City Apartments now ready to move into
PU
2018BUWOG AG : Release of a Financial report
EQ
More news
Chart BUWOG GROUP GMBH
Duration : Period :
BUWOG Group GmbH Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Andreas Holler Co-Managing Director
Clemens Taschée Co-Managing Director
Valerija Karsai Co-Managing Director
Fabian Heß Chairman-Supervisory Board
Herwig Teufelsdorfer Chief Operating Officer
Sector and Competitors
1st jan.Capitalization (M$)
BUWOG GROUP GMBH0.00%0
CHINA VANKE CO., LTD.-0.72%41 664
VONOVIA SE-10.92%25 710
CHINA EVERGRANDE GROUP1.78%22 034
CHINA MERCHANTS SHEKOU INDUSTRIAL ZONE HOLDINGS CO., LTD.0.55%18 350
DEUTSCHE WOHNEN SE-8.46%13 075