News | By practice area

Wednesday 4th July 2007

Leading European law firm SJ Berwin advised Deutsche Wohnen AG on the acquisition of the GEHAG Group of two investment companies managed by Oaktree Capital Management LLC.

In the first phase of the transaction, Deutsche Wohnen Group will indirectly acquire close to 85 per cent of the GEHAG Group, which comprises approximately 27,000 residential units in Berlin and Brandenburg, and intends to purchase another 15 per cent shareholding from HSH Real Estate AG. Combined with the residential units held in the GEHAG Group, Deutsche Wohnen AG’s residential portfolio will increase from currently approximately 23,000 to approximately 50,000. The acquired GEHAG Group also comprises a number of residential care homes and nursing homes as well as a broadband cable provider with more than 70,000 subscribers.

The enterprise value of a 100 per cent equity stake in the GEHAG Group amounts to approximately €1.84 billion. The Sellers will receive a cash purchase price as well as 6.4 Million new shares in Deutsche Wohnen AG and convertible bonds with a total nominal value of €25 million.

The final closing of the transaction is dependent on several conditions precedent, among others the approval of the German antitrust authorities.

SJ Berwin has already advised its client Deutsche Wohnen AG with regard to the deconsolidation from the Deutsche Bank Group and the subsequent listing of its shares on the official market segment of the Frankfurt Stock Exchange in 2006. With the acquisition of the GEHAG Group Deutsche Wohnen AG has now implemented its strategy of growth as announced at that time.

SJ Berwin's Frankfurt office advised Deutsche Wohnen AG with a team jointly led by Dr. Michael Roos (corporate) and Rüdiger Knopf (tax), working alongside Dr. Christian Cornett, Boris Kläsener (both corporate), Boris Meissner (tax), Tilman Siebert (antitrust) and Dr. Frank Regelin (capital markets). These were supported by associates Dr. Florian Harder, Dr. Daniel Schnell, Sandra Standhaft (all corporate), Sven Grundmann, Carsten Lange, Carsten Ludwig (tax), Dr. Sascha Grimm (capital markets), Andreas Kirchner (finance), Dr. Ilka Heinemeyer and Dr. Golo Weidmann (employment).

Contact:

Dr. Michael Roos, Tel. +49 (69) 505032-170, email: michael.roos@sjberwin.com
Ann-Charlott Steinbrück, Marketing and Communications, Tel. +49 (69) 505032-318, email: ann-charlott.steinbrueck@sjberwin.com