CTP enters German logistics with €800m takeover of DIR

Amsterdam-listed industrial buildings specialist CTP is entering the German logistics property market with the €800 million takeover and delisting of Deutsche Industrie REIT.

DIR’s portfolio consists of 1.6 million sq m of space and CTP said that this pitches the all-in acquisition cost at €728 per sq m, ”significantly below replacement costs”.

CTP, which has historically focused on the CEE region and also has a Prague base, said that the deal combines DIR’s proven track record of asset sourcing in Germany with CTP’s own development and asset management capabilities. It will be a springboard for further growth as DIR has 665 tenants in its 89 assets which are present in 12 of the 16 German federal states. CTP’s existing portfolio is worth €6.4 billion.

CTP plans to improve the sustainability profile of DIR’s portfolio which is largely non ESG-certified.

The deal will not affect CTP’s leverage ratio unduly as it said that the two companies have a similar leverage profile.

In an agreed bid with more than 56% of DIR’s shares secured, CTP is offering 25 new CTP shares per DIR share which implies an offer price of €24.94 per DIR share based on CTP’s last closing share price of €19.95 per share.

“CTP is quickly delivering on the pan-European active growth strategy we outlined during our IPO earlier this year,” said Remon Vos, Founder and CEO of CTP.

He said that the acquisition will “create a meaningful entry into the German logistics and industrial real estate market.”

“We are buying a portfolio of scale, below replacement value, where we believe we can increase rental values, improve operating margin, and realise redevelopment potential.”