FRANKFURT May 16 German real estate group
Corpus Sireo, which manages offices for clients such as Deutsche
Bank, Deutsche Telekom, Cerberus and
Brookfield, has attracted several bids and expects a sale to be
decided in July, people familiar with the matter said.
The owners of Corpus Sireo - savings banks in Cologne,
Dusseldorf and Frankfurt - have asked for binding offers by an
end-June deadline in a two-part deal potentially worth more than
600 million euros ($823 million), the sources said.
Germany's real estate sector has seen a string of deals,
with investors attracted by the reliable income stream that
property projects typically offer, as well as higher yields than
German sovereign bonds. They are also betting on rising property
prices in Europe's largest economy.
Last month, Austria's Immofinanz spun off its
German arm Buwog into a separate company. In February,
Deutsche Annington bought residential units worth 1.4
billion euros from Blackstone and Round Hill Capital. And
in 2013, GSW and Deutsche Wohnen merged to
create Germany's No. 2 real estate company.
The suitors for Corpus Sireo's real estate asset management
business, which manages assets worth 16.5 billion euros, include
CBRE Group, CR Investment Management and Jones Lang
LaSalle, the sources said, adding initially interested
groups such as Patrizia and Wisag had dropped out.
The sellers are hoping to see the real estate asset
management business valued at up to 300 million euros, whereas
buyers may be willing to pay only 200 million, two sources said.
In 2013, the business posted earnings before interest, tax,
depreciation and amortization of 41 million euros. Its peers
trade at an average multiple of 16 times their expected earning.
Separately, residential property held by Corpus Sireo is
being sold and will likely fetch a multiple of 15-16 times its
annual rental income of more than 20 million euros, the sources
added. The asset has caught the interest of several groups
specialising in residential property, the sources said.
Corpus Sireo has 560 staff at eleven locations in Germany
and Luxembourg, and also offers property brokerage and
The company, its owners, the bidders and Lazard, which is
organising the transaction, all declined to comment.
($1 = 0.7291 Euros)
(Reporting by Arno Schuetze; Editing by Mark Potter)