Reuters
Deutsche Wohnen (DWNG.DE) offered to buy rival residential landlord GSW Immobilien (GIBG.DE) for 1.8 billion euros ($2.3 billion) to expand in Berlin’s booming rental market and tap nascent interest from international investors.
The all-share deal would push an enlarged Deutsche Wohnen closer to the top five European real estate firms by market value, such as British Land (BLND.L) and domestic rival Land Securities (LAND.L), giving it easier access to funding from investors across the continent.
Deutsche Wohnen said on Tuesday it plans to finance the bid for GSW by issuing as many as 135 million new shares, more than four-fifths of its existing share capital.
The acquisition would be Germany’s second-biggest residential real estate deal since Whitehall bought LEG Immobilien (LEGn.DE) for 3.4 billion euros in 2008.