FRANKFURT and LONDON, 16 May, 2012 – An affiliate of Cerberus Capital Management, L.P. (“Cerberus”) has entered into a definitive agreement to acquire the assets of distressed company, Speymill Deutsche Immobilien Company plc, from the Receivers. As a key part of this transaction, Cerberus worked with the company’s bank lenders to effect the recapitalization of the assets through a restructuring of the company’s €985 million of distressed bank loans, and the injection of capital in the form of subordinated debt and equity that will be used primarily to pay down debt and make improvements to the assets. The transaction is expected to close later this week.
Ben Cairns, Receiver, of Ernst & Young, said: “This is a landmark recapitalization and distressed loan restructuring which is to the mutual benefit of the existing banks, stakeholders of the acquired assets, and the new capital sponsor, Cerberus.”
Cerberus has been an active investor in Germany since 2002. Cerberus, along with a co-investor, launched Germany’s largest initial public offering (IPO) of 2011 with the successful listing of Berlin-based GSW Immobilien AG, on the Frankfurt Stock Exchange in April of last year. GSW was acquired from the State of Berlin in 2004, and Cerberus led the restructuring of the company and improvement of the assets.
Lee Millstein, Senior Managing Director at Cerberus, stated: “We are pleased to work with Speymill Deutsche Immobilien’s banks to lead the recapitalization of the assets and the restructuring of its distressed loans. The banks benefit from this transaction by having a large portfolio of non-performing loans converted to performing loans, while stakeholders benefit from Cerberus injecting new capital for improvements and leading the execution of a turn-around of the assets.”
The lenders are a consortium of banks led by Netherlands-based NIBC Bank N.V. along with German banks HSH Nordbank AG and Norddeutsche Landesbank (NORD/LB.
Martijn Weinreich at NIBC, said: “Cerberus’ creative, knowledgeable approach to restructuring the portfolio’s existing debt and its established track record in Germany made it the ideal partner.”
CORPUS SIREO has been engaged to coordinate asset management. GOAL will continue to oversee day-to-day management of the assets. Engel & Völkers has been retained to market individual assets to private investors in Germany after capital and operational improvements have been implemented.
Kuna & Co. KG served as Cerberus’ financial advisor on the transaction. Freshfields Bruckhaus Deringer LLP provided legal counsel to Cerberus.
About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of the world’s leading private investment firms. Cerberus has approximately US $20 billion under management invested in four primary strategies: distressed securities & assets; control investments; commercial mid-market lending and real estate-related investments. From its headquarters in New York City and large network of affiliate and advisory offices in the US, Europe and Asia, Cerberus has the on-the-ground presence to invest in multiple sectors, through multiple investment strategies in countries around the world.
Annette Matzke: +49 (69) 9130 4348
Alex Brown: +44 (0) 207-067-0732
Bronwyn Daly: +44 (0) 207 067 0729
Peter Duda: +1 (212) 445-8213
John Dillard: +1 (212) 445-8052
Cerberus Media Line: +1 (212) 891-1558