German property group DIC Asset to buy German Estate Group
FRANKFURT, June 5 (Reuters) - German property group DIC Asset has agreed to buy German Estate Group for 225 million euros ($253 million) in cash from real estate investor TTL and private equity firm KKR, the companies said on Wednesday.
GEG is an investment and asset management platform specialised in commercial real estate properties that are placed with institutional investors via investment structures. It has 3.6 billion euros in assets under management, including landmark properties such as the Sapporobogen in Munich and the Garden Tower and Villa Kennedy in Frankfurt.
The deal will result in a significant increase in profitability per share, DIC Asset said, raising the core profit (FFO) guidance for 2019 to 88-90 million euros from 70-72 million. ($1 = 0.8877 euros) (Reporting by Arno Schuetze, editing by Riham Alkousaa)
