Leading Global Law Firm Baker McKenzie has advised the majority shareholders in their sale of 93.4 percent of SSN Group AG to stock exchange listed Consus Real Estate AG in a deal valuing SSN at an implied enterprise value of c. 1.1 billion euros. The transaction is expected to be completed within the fourth quarter of 2018.
Through this acquisition, Consus will significantly increase its gross development volume (GDV) from EUR 6.2bn to EUR 9.6bn as well as the overall number of projects from 53 to 65, strengthening its position as Germany's largest property developer. SSN's GDV amounts to EUR 3.4bn and consists of 12 projects focussed on Germany's top-9-cities, including key cities such as Berlin, Hamburg and Frankfurt.
Consus Real Estate AG, based in Berlin, Germany, is a leading developer of residential real estate properties in the country's Top 9 cities. With a gross development value of EUR6.2bn Consus focuses on the construction of standardised apartment blocks. It acts along the entire development value chain with institutional forward sales, digitalisation of construction processes and industrial mass production.
SSN Group AG is headquartered in Zug, Switzerland, and employs c. 200 people. It offers real estate development, consulting, and investment services, and its teams have completed and successfully initiated projects worth over EUR 7.5bn.
Speaking after the transaction was announced, Michael Tockweiler, CEO of SSN Group, said: "We are delighted to be joining forces with Consus. The acquisition gives us excellent access to financing and allows us to continue to build on our strong financial base. This creates exciting growth potential for the entire SSN Group.” He added: "We thank the Baker McKenzie team for their tremendous support throughout the transaction.”
The transaction will be funded via a mix of cash and shares. The 93.4% majority stake in SSN Group will be acquired for a total consideration of EUR 255m in cash. Simultaneously, Consus will separately acquire 38.9% in SG Development GmbH, a 51% subsidiary of SSN Group, which holds nine out of twelve development projects, as well as a 43% stake in an SSN landmark development in the centre of Berlin from Consus' majority shareholder Aggregate Deutschland S.A, for a total consideration of EUR 215m against issuance of new shares in Consus.
The Baker McKenzie team advising SSN Group was led by Alexander Fischer and assisted by Pascal Richard, Christian Rioult, Markus Wolf and Philip Spoerlé.