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Starwood Capital Group expands its presence in CEE

Starwood Capital

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The US property investment company Starwood Capital Group has made an offer to purchase minority stakes in the Austrian property companies CA Immo and Immofinanz amid its efforts to enter markets in Central and Eastern Europe. The private equity firm Starwood Capital, which claims to manage assets for 56 billion USD, said last month it wanted to acquire up to 26% of CA Immo and up to 5% of Immofinanz.
“Starwood Capital considers Austria, Germany and Central and Eastern Europe as attractive markets and is committed to increasing its exposure to property markets there”, says the official statement of the company.
Starwood offers shareholders of CA Immo a price of 27.50 EUR (34.02 USD) per share minus the dividends paid. The offer to Immofinanz’s shareholders was 2.10 EUR per share minus the dividends paid.
Last month, Immofinanz rejected the offer, saying it was too low, and CA Immo said it needed more information to make an opinion.
The offer to CA Immo is valid until May 16, while the offer to Immofinanz expires on May 30. The two companies are estimated to total 824 million EUR (1.02 billion USD).
Immofinanz owns 26% of CA Immo. In February, the company said it was considering selling its stake after virtually abandoning its plan to acquire CA Immo.
Starwood said it supports the leadership of both companies and does not plan to acquire a majority stake in any of them. Both will remain listed on the Vienna Stock Exchange.