Deutsche Annington shares fall on Terra Firma placing

FRANKFURT Tue May 20, 2014 6:43am EDT

FRANKFURT May 20 (Reuters) - British private equity company Terra Firma and a co-investor on Tuesday placed a 12.5 percent stake in Deutsche Annington with investors, sending shares in the German property group lower.

The buyout group led by British financier Guy Hands and its partner Citigroup Property Investors sold 30 million shares for 19.50 euros apiece, a source familiar with the transaction said.

Terra Firma and Deutsche Annington declined to comment.

Shares in Deutsche Annington were down 5.5 percent to 20.21 euros by 1029 GMT, leading the biggest decliners in Frankfurt's small-cap index.

Terra Firma is also planning to transfer its remaining shares in Deutsche Annington, held through investment vehicle Terra Firma Deutsche Annington Fund (TFDA), to the fund's owners.

That move will likely put further pressure on Deutsche Annington shares as some of TFDA's investors may sell as soon as a 90 day lock-up period expires, a Frankfurt-based trader said.

TFDA holds a 67.3 percent stake Deutsche Annington.

The transfer of the Deutsche Annington shares to the Terra Firma investors will bring the real estate company's free float to around 90 percent and allow fund investors to take advantage of better stock market liquidity to realise returns, Terra Firma said. (Reporting by Arno Schuetze and Christoph Steitz; Editing by Ludwig Burger, Philipp Halstrick and Mark Potter)

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