Apollo Global Management’s Acquisition of a minority interest in DEMIRE Deutsche Mittelstand Real Estate AG

Hogan Lovells advised DEMIRE Deutsche Mittelstand Real Estate AG on the acquisition of a strategic interest in the company by funds managed by Apollo.

As part of this transaction, the nominal share capital of DEMIRE is increased by 10% from authorised capital. AEPF III 15 S.à r.l., a holding company controlled by funds, which in turn are advised by an affiliated company of Apollo Global Management LLC, was admitted for subscription of the new shares at the issuance price of € 4.35 per share. The new shares will be subscribed for once the German Federal Cartel Office (Bundeskartellamt) has granted its approval.

Moreover, on 26 February 2018, AEPF III 15 S.à r.l. announced its intention to make a mandatory offer to DEMIRE’s shareholders for the acquisition of all of the company’s shares at a price of € 4.35 per share as it has obtained control over DEMIRE as a result of a cooperation agreement entered into with Wecken und Cie and with members of the Wecken family. With regard to Fair Value REIT-AG, a company which is also listed on the stock exchange and in which DEMIRE holds an indirect interest of 77.70%, AEPF has announced the decision to publish a voluntary public takeover offer at the statutory minimum price. AEPF intends to make the offer in the form of a so-called delisting offer.

DEMIRE AG holds commercial properties in medium-sized towns and up-and-coming peripheral locations of metropolitan areas throughout Germany with a value of approx. € 1 billion. The company, led by Markus Drews and Ralf Kind, in 2016 recorded €127 Million Revenues.

Hogan Lovells advised DEMIRE AG with a team including Michael Schlitt (Picture), Susanne Lenz, Maurice Heine, Andreas Mildner, Christopher Dassbach, Julia Krämer (Capital Markets), Birgit Reese, Jens Uhlendorf, Christoph Louven, Lars Benger, Tobias Böckmann, Tobias Strohmeier, Jan-Felix Wickermann (Corporate/M&A), Michael Dettmeier (Partner, Tax) and Martin Sura (Partner, Antitrust).

Involved fees earner: Michael Schlitt – Hogan Lovells; Susanne Lenz – Hogan Lovells; Birgit Reese – Hogan Lovells; Jens Uhlendorf – Hogan Lovells; Christoph Louven – Hogan Lovells; Lars Benger – Hogan Lovells; Tobias Böckmann – Hogan Lovells; Tobias Strohmeier – Hogan Lovells; Michael Dettmeier – Hogan Lovells; Martin Sura – Hogan Lovells;

Law Firms: Hogan Lovells;

Clients: DEMIRE Deutsche Mittelstand Real Estate AG;