FRANKFURT Jan 23 German real estate group
Gagfah has called off the sale of its Woba unit after
securing a 1 billion euro ($1.3 billion) loan from Bank of
America Merrill Lynch, two people close to the
transaction told Reuters.
The unit comprises 38,000 flats located in the eastern
German city of Dresden and makes up a quarter of the portfolio
of Gagfah, owned by private equity investor Fortress.
Gagfah had put Woba on the block after running into
difficulties refinancing a 1 billion euro loan of Woba maturing
Bidders included peer Deutsche Wohnen but none
offered more than 1.6 billion euros, a price Gagfah was
unwilling to accept, the sources said on Wednesday.
The refinancing - expected to be finalised and announced in
the next couple of days - made the sales plan redundant, they