Immofinanz completes acquisition of Adama for EUR 42.43 mln

Newsroom 16/06/2011 | 19:09

Immofinanz Group has acquired the remaining 69.22 percent stake in Adama Holding. Immofinanz had been a shareholder in the South-East European residential property group since 2007 and will now become the sole shareholder. The purchase price for the stake totals EUR 42.43 million. The sellers include the international US-based hedge fund Tiger Global, Morgan Stanley, Lehman Brothers UK in administration and the founding shareholders.

“We decided in favor of the complete takeover of Adama because the company and its brand name are well established in South-Eastern Europe. Our goals are to integrate the expertise and market know-how of local management into the Immofinanz Group and to realize synergies to the greatest extent possible. From our viewpoint, Adama is the ideal platform for the planned expansion of our residential construction and development activities, above all in Romania“, said Daniel Riedl, member of the Executive Board of the Immofinanz Group, on the reasons for this transaction. “The 100 percent takeover of Adama also underscores the steady implementation of our strategy to develop non-controlling interests into majority holdings and attain strategic control or to sell these investments“, added Riedl.

Adama has completed approximately 1,500 apartments since its founding in 2005, ten projects are currently under construction or realization. The company has a development portfolio of properties with a total area of over 1,360,000 sqm, which would allow for the realization of more than 40 additional projects.

“Our Romanian portfolio currently includes a number of undeveloped sites in Bucharest. The objective is to create entire city quarters – an interesting challenge that we intend to address with the Adama team as soon as the Romanian economy can provide the necessary environment“, said Riedl.