A new quoted company will give investors the chance to participate in a focused pan-European property vehicle, says RSE Grundbesitz
Dr Lutz Ristow, former chairman of RSE Grundbesitz, is to create a focused pan-European property company by buying out the non-residential assets of the merged WCM/RSE group.
A German restructuring between the two companies – WCM owns 68% of RSE – will leave WCM owning the residential components of RSE, and Ristow spinning out any non-residential assets that the two companies hold. The deal will also include RSE’s stakes in Spanish property company Prima and Swiss property company Maag Holding.
Ristow, who is understood to have backing for the buy-out, plans to transfer the assets to a quoted vehicle. The structure for the company is expected to be ready by the summer but the transfer is dependent on proposed tax changes in Germany which could affect the deal. It is hoped to be concluded this year.
At the time of the takeover of RSE, WCM publicly stated that it was only interested in RSE’s residential assets. RSE’s holdings include around 41,000 residential units which are mainly controlled through its 85% stake in housing company GEHAG. WCM is not expected to retain a stake in the new commercial property company.
“It will give international investors the possibility to buy into a clear European commercial real estate company,” said Andreas Ibel, a member of the RSE board.
RSE has undertaken a strategy of creating a network of alliances to build up a pan-European property portfolio. This has included the stakes in Prima and Maag.
The company also has a link up with Beni Stabili in Italy and is looking for partners in the UK and France. Last month RSE increased its stake in Prima from 10% to 15% by buying shares at market value.
RSE and Prima have also increased their stakes in Maag by subscribing to a SFr12.6m capital increase.
