Merger Could Create Europe’s Fourth-Biggest Listed Property Company
A merger of two companies, including one created by private equity giant Lone Star, has been proposed, and if it goes ahead it would create the fourth-largest listed company in Europe.
German-listed TLG said it bought a stake in Aroundtown Properties in a deal that valued Aroundtown at around €10.2B (£9.3B). The deal would create a company with around €25.5B of assets, putting it behind only Unibail-Rodamco-Westfield, Vonovia and Deutsche Wohnen, Bloomberg said. Note that there isn’t a UK property company with anywhere near that amount of assets.
TLG owns offices, shops and hotels in Germany, while Aroundtown owns assets across the Continent, with a focus on Germany and the Netherlands. Bloomberg said the deal would bring together Aroundtown’s dealmaking expertise with TLG’s development specialism.
TLG was created by Lone Star. It bought a portfolio of 800 assets from the German government for €1.1B. It floated the company for €1.3B two years later, retaining a 40% stake. As the share price has risen it has gradually sold off its holding.