Real estate group Ado issues new shares at a large discount

House of Ado Properties in Berlin

With the takeover of Consus, Ado wants to become a “fully integrated real estate platform” that builds apartments for its own portfolio.

(Photo: Ado Properties)

Munich The landlord Ado Properties implements the announced 450 million euro capital increase to take over the project developer Consus Real estate in fact. To this end, existing shareholders will be offered 30.8 million shares at a price of EUR 14.60, as Ado announced on Wednesday in Berlin.

This is a discount of 41 percent on Tuesday’s Xetra closing price. From July 6 to 20, Ado shareholders can subscribe to five new ones for every twelve of their papers. According to Ado, 36 percent of the share capital already has a firm commitment to participate. The undrawn shares are to be sold on July 21st. On Wednesday, Ado shares listed in the SDax fell 3.2 percent.

The takeover of Consus is the second part of the Ado shopping tour announced at the end of 2019, which is to make the company based in Luxembourg the fourth largest listed housing company in Europe. Ado announced on Monday that it would exercise the purchase option agreed for Consus in December and then submit an exchange offer to the minority shareholders. According to Ado, Ado already has more than 80 percent of Consus. The 450 million euros are to be used to repay debts incurred by Consus for its development projects.

In the coming years, the project developer plans to build more than 10,000 apartments in the seven largest German cities. This ensures Ado supplies to rented apartments. Ado, previously only represented in Berlin, had previously merged with Adler Real Estate, which is active in northern Germany, and will operate as the Adler Group.

More: Real estate group Ado takes over project developer Consus.


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