To reduce its debt Adler Group sell 20% of the property portfolio to LEG Immobilien

Alder will keep a 10.1% stake for tax reasons thus the sale price for the 185 commercial units and 15,350 apartments units will be slightly below the property Valuation.

On Monday, the leading German real estate investor Alder Group said they have agreed to sell property worth 1.4 billion euros ($1. 73 billion)  both residential and commercial in a bid to rival LEG Immobilien to reduce its debt. According to Alder the net proceeds from the transaction is to be around 800 million euros which should take place by the end of 2021.

Adler Group is one of the leading German residential real estate companies with an €12bn in portfolios. Across Germany, they clench and supervise more than 70,000 beautiful and large apartments, with a further 10,000 more units under development in Germany’s top 7 cities.

With its geographically varied and incredible rental portfolio, Adler Group is a pan-German organization that combines over 30 years of real estate experience. Its German group headquarters is located in Berlin.

Alder will keep a 10.1% stake for tax reasons and thus the sale price for the 185 commercial units and 15,350 apartments units will be slightly below the property Valuation.

Early, Frankfurt trading shares in Alder rose to 3.3% after the announcement. Adler said that the deal would not influence its 2021 outlook

German real estate company Vonovia on Friday said it had bought an option to acquire around 13% of Adler, whose shares had fallen over as much as 33% after an activist investor characterized it as “not investible”. Adler disputes the report.