Swiss Life to Acquire German Real Estate Group Corpus Sireo for $280M
- Aug 18, 2014
By Adriana Pop, Associate Editor
In a $280 million (€210 million) deal, Zurich-based insurance group Swiss Life has won the off-market bidding process for the acquisition of CORPUS SIREO, the leading independent real estate asset manager in Germany.
The transaction, which requires regulatory approval, is expected to close in the second half of the year, with retroactive effect starting Jan. 1, 2014.
The sellers of the company are three German savings banks: Sparkasse KölnBonn (50 percent), Stadtsparkasse Düsseldorf (25 percent) and Frankfurter Sparkasse (25 percent).
Cologne, Germany-based Corpus Sireo manages more than $21.43 billion (€16 billion) in real estate assets, with annual revenues of about $214 million (€160 million).
The business segments Swiss Life acquired include:
- Asset management (commercial, residential and retail), with full-service solutions for acquiring, optimizing and marketing customers’ real estate portfolios or individual properties;
- Project development, including the design, building and marketing of residential projects;
- Investment management, comprising the design, launching and management of indirect real estate investments;
- Marketing of residential property in the conurbations of Cologne/Bonn, Düsseldorf and Frankfurt, as well as commercial properties throughout Germany.
Once completed, the acquisition will turn Swiss Life into Germany’s leading real estate asset management service provider.
“This acquisition is an important step to extending our position as a leading provider in one of our core strategic areas, real estate asset management, from Switzerland and France to Germany,” said Patrick Frost, CEO of the Swiss Life Group. “Given our more than 150 years of experience in the real estate business and the additional expertise contributed by the 550 employees of CORPUS SIREO, we are confident that we will be able to successfully expand this business area further.”
Founded in 1995, Corpus Sireo has become one of the two most popular employers in the German real estate sector. It provides real estate services for third parties through its 11 branch offices in Germany and Luxembourg. Its customers include investors, banks and companies with proprietary real estate portfolios.
“With the globally focused Swiss Life as its new owner, CORPUS SIREO will be able to further develop its business systematically and enter new markets. To this end, we would also like to give greater consideration again to co-investments. We are looking forward to taking the next steps in our development alongside Swiss Life,” said Ralph Günther, spokesperson for the management board of CORPUS SIREO Holding GmbH & Co. KG.