Adler Group S.A. announces agreement to sell its North Rhine-Westphalia-based portfolio

• Adler Group announces to have signed an agreement to sell its North Rhine-Westphalia based portfolio comprising 6,788 units via a share deal at a valuation of €422.5m to Orange Capital Partners and OneIM
• After repayment of asset-level secured financing and transaction costs, once complete, the transaction could generate as much as c. €215m in net cash proceeds
• Following the transaction, of which a first close is expected for 31 January 2025, the remaining Adler Group rental portfolio of c. 18,000 units will concentrate itself almost entirely in Berlin

Luxembourg, 23 December 2024 – Adler Group S.A. ("Adler Group") announces that it has entered into an agreement to sell 89.9% of its shares in the subsidiaries of the North Rhine-Westphalia-based “Cosmopolitan portfolio”, to Orange Capital Partners (“OCP”) and One Investment Management (“OneIM”), a global alternative investment management firm, with a put option to sell the remaining 10.1% in due course.

The agreement remains subject to the satisfaction of certain closing conditions, which are expected to be completed by 31 January 2025. Once closed, the transaction, which has a total valuation of €422.5m for 100% of the GAV and compensation for embedded deferred tax liabilities, could generate up to c. €215m in net cash proceeds after the repayment of asset-level secured financing and transaction costs.

The Cosmopolitan portfolio comprises 6,788 rental units with an occupancy rate of 97.4% and average rent of €6.30/sqm/month. The assets are mainly located throughout Duisburg, Düsseldorf, Essen, Oberhausen and Dortmund.

The transaction will be concluded via a share deal in which a tranche of 89.9% of the share capital is expected to close on 31 January 2025. Further to that, the parties also agreed to enter into a put option, allowing Adler to sell its remaining 10.1% stake to OCP and OneIM in due course.

Dr. Karl Reinitzhuber, CEO of Adler Group, said: “We are proud to agree a deal as a reliable partner in this transaction and would like to thank all parties involved. We have reached another milestone in our portfolio optimisation. After this transaction, we will hold a portfolio almost entirely in the Berlin metropolitan area, an attractive market with strong fundamentals and substantial embedded potential. We will continue to systematically develop this portfolio in the future.”

Stefan Brendgen, Chairman of the Board of Directors of Adler Group, said: “The announcement of this second pivotal transaction within a few weeks shows that, with the help of our regained stability, we can implement our strategy in a targeted manner.”

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