US investor Blackstone Group has bought 31,000 apartments in Germany from WCM for €1.4bn.
The sale marks the end of WCM’s involvement in the property sector. “We now have the opportunity to refocus on the Industry division and to grow on the basis of solid financing and equity position,” said WCM chairman Roland Flach, adding that debt had fallen to €200m after the sale.
WCM was forced to sell the apartments after it had raked up heavy losses on shares held in Commerzbank and IVG. It bought the shares a couple of years ago, believing their value would increase.
Earlier this year, WCM had to part with a 50%-stake in property company IVG. When WCM failed to repay a €600m loan last December, the creditor banks seized the IVG stake, which had served as surety. German private bank Sal Oppenheim bought a 25.1% stake in the country’s biggest real estate company while another 11.6% went to creditor bank HSH Nordbank. The remainder was divided among the other creditor banks. On 1 January, WCM will merge with Klöckner-Werke to focus on filling and packaging technology.
