By Neetha Mahadevan
Austria's Immofinanz AG's (IIA.VI) Buwog unit is buying about
892 million euros ($1.21 billion) of residential property from
Solaia Real Estate--a joint venture between an investment fund of
Deutsche Bank AG (DBK.XE) and Prelios SpA (PRS.MI).
Immofinanz will spinoff Buwog on the Frankfurt exchange, it
confirmed late Wednesday.
"This transaction paves the way for the...resulting separation
of the residential properties in Germany and Austria from the
commercial portfolio of Immofinanz Group," Immofinanz Chief
Executive Eduard Zehetner said.
The deal--expected to close in the second quarter--will be
executed through share deals and is subject to antitrust
approval.
The Solaia purchase increases by 18,000 units Buwog's
residential properties to about 54,000 units with a gross asset
value of 3.49 billion euros.
Solaia is 60% owned by the Deutsche Bank fund.
-Eyk Henning and Isabel Gomez contributed to the article
Write to Neetha Mahadevan at neetha.mahadevan@wsj.com
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