GSW Immobilien AG (GIB), the German residential landlord that received a takeover bid from Deutsche Wohnen AG (DWN) last week, said the union may be beneficial.
“A combination of GSW and Deutsche Wohnen could make sense from an operational and industry point of view,” the company said in a statement today. “GSW is in the process of thoroughly analyzing the proposed offer.”
The acquisition would create Germany’s largest property company. Both landlords are based in Berlin, where price and rent gains have outpaced the rest of the country. Deutsche Wohnen owns about 90,000 apartments in large German cities including Berlin and Frankfurt, and GSW owns 60,000 homes in the capital.
Deutsche Wohnen, Germany’s second-largest residential company by market value, on Aug. 20 offered to buy its competitor in an all-share transaction that values GSW at about 1.75 billion euros ($2.3 billion).
GSW said today it must analyze the financial value of Deutsche Wohnen’s offer before it makes a decision, and that it will wait for more information on the bidder’s “strategy and intentions.”
On Friday, GSW promoted Chief Operating Officer Joerg Schwagenscheidt and Chief Financial Officer Andreas Segal to co-chief executive officers. The company had been without a CEO since Bernd Kottmann stepped down in July following investor complaints about the way he was hired.
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