Adler sells German rental portfolio for €423m

Germany’s Adler Group SA agreed to sell its Cosmopolitan portfolio in North Rhine-Westphalia to investment firms Orange Capital Partners and One Investment Management.

The German landlord will dispose of an 89.9 per cent stake in the properties, valued at €423 million ($440 million). The portfolio includes 6,788 rental units across Duisburg, Düsseldorf, Essen, Oberhausen, and Dortmund.

Adler’s management had previously indicated plans to market the portfolio as part of its strategy to shore up cash following two debt restructurings.

The company is also focusing on reducing funding costs and recently refinanced €1.2 billion of first-lien debt at a lower rate.

The transaction will generate approximately €215 million of net cash for Adler. The parties have also entered a put option for the sale of the remaining 10.1 per cent stake at a later date.

Orange Capital Partners is a real estate and asset management firm based in Amsterdam. One Investment Management, backed by Abu Dhabi’s Royal Group and Mubadala Investment Co, is an alternative investment manager established by former SoftBank Vision Fund co-CEO Rajeev Misra.

Attribution: Bloomberg

Subediting: M. S. Salama