MLP : strategically expands real estate business through majority stake in the DEUTSCHLAND.Immobilien Group
March 19, 2019 at 02:00 pm EDT
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Wiesloch/Hanover, March 19, 2019 - With the MLP Group having already developed the wealth management and non-life insurance areas into significant pillars of revenue over the last few years, the financial services provider is now strategically expanding its real estate business. To this end, MLP is acquiring a 75.1 percent stake in the DEUTSCHLAND.Immobilien Group. The company is a marketplace for investment properties and collaborates with roughly 5,800 sales partners. The comprehensive online platform comprises both third party real estate projects and, in selected areas, also real estate projects developed in-house - above all in the field of age-appropriate living and nursing care. This successful business model will be continued and further strengthened. There is also additional potential with the existing business with MLP's private clients and the MLP Group as a whole.
The total purchase price is in the lower double-digit million range. It comprises an initial purchase price and a performance-based purchase price component, which is linked to business development from 2019 to 2021. MLP has agreed a right of first refusal for the outstanding shares that remain with the management of the company.
'We have established the MLP Group on a significantly broader footing over the last few years and thereby created a very stable revenue basis that has made us visibly less sensitive to short-term market influences and less dependent on individual consulting areas. We are continuing resolutely along this path. Having built up the real estate area for our private clients since 2014, we are now fully developing the massive market potential,' comments Chief Executive Officer Dr. Uwe Schroeder-Wildberg. 'At FERI, we have established proven expertise in the wealth management area since 2006, as well as for more than 5,000 sales partners in the non-life insurance area at DOMCURA since 2015. With this acquisition, we now also have a strong portfolio for estate agents and brokers. We will continue to further strengthen and develop this business.'
DEUTSCHLAND.Immobilien was founded in 2008. Core element is an online platform, which is used by around 5,800 sales partners. Dedicated own project developments take place primarily in the growth field of age-appropriate living and nursing care. MLP is anticipating a contribution to earnings before interest and taxes (EBIT) by the DEUTSCHLAND.Immobilien Group in the low single-digit million range as early as the first full financial year after the acquisition, i.e. 2020. This transaction will have no impact on MLP SE´s forecast for 2019 where a slight increase in EBIT is anticipated.
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MLP SE published this content on 19 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 19 March 2019 17:59:07 UTC
MLP SE is a Germany-based holding company engaged in the investment management and fund operators industries. Through its subsidiaries, the Company operates as a financial services company which offers financial products and solutions. The Company operates four business segments. The Financial Services segment provides consulting services, insurance, investments, pension provision schemes and loans, as well as contract brokering concerning these financial services, among others. In addition, this segment includes portfolio management, trustee credit business and credit card business. The Feri segment covers wealth and investment consulting. The Holding business segment covers the Companyâs internal services and activities. The Non-Life Insurance segment covers underwriting. All segments are active in Germany, whereas the Feri segment also operates in Luxembourg. The Company operates MLP Finanzdienstleistungen AG, FERI AG, TPC GmbH and the DOMCURA Group as wholly owned subsidiaries.