LEG Immobilien SE (XTRA:LEG) entered into term sheet agreement to acquire Portfolio of 15,350 residential units and 185 commercial units from Adler Group S.A. (XTRA:ADJ) for transaction valued at approximately €1.5 billion on October 11, 2021. LEG Immobilien SE (XTRA:LEG) entered into share purchase agreement to acquire Portfolio of 15,350 residential units and 185 commercial units from Adler Group S.A on December 1, 2021. Net proceeds from transaction was €800 million. The transaction shall be executed by way of share deals and Adler group shall retain a 10.1% participation in the relevant entities. Therefore, the cash inflow, also due to customary purchase price adjustments, will deviate from the real estate valuation. In Related transaction, LEG Immobilien SE entered into an agreement to acquire Brack Capital Properties N.V from Adler Group S.A for €850 million on December 1, 2021. The two transactions generate combined net cash proceeds of €1.65 billion. The closing of the transaction is subject to due diligence conducted by LEG, the conclusion of final agreements and the fulfillment of customary market conditions, in particular regulatory approvals. LEG has undertaken detailed due diligence on the portfolio, and the signed agreement. Transaction is expected to take place by the end of 2021. The net proceeds, i.e.. after repayment of secured loans, are expected to be at around €800 million, thus accelerating deleveraging with the LTV target of below 50%. The sale may lead to a significant reduction in ADLER's leverage and return capital to its bond holders. This disposal would have no impact on ADLER´s recently increased financial guidance for 2021 with a Net Rental Income target of €340-345 million and an FFO 1 target of €135-140 million. CBRE acted as broker on the transaction. White & Case LLP acted as legal advisor to Adler Group S.A. Carsten Berrar, Max P. Birke, Michael Rosenthal, and Konstantin Technau of Sullivan & Cromwell (Germany) LLP acted as legal advisor to LEG Immobilien SE.

LEG Immobilien SE (XTRA:LEG) completed the acquisition of Portfolio of 15,350 residential units and 185 commercial units from Adler Group S.A. (XTRA:ADJ) on January 3, 2022. As part of the closing, Adler Group received net proceeds of around €800 million, which will mainly be used for further deleveraging of Adler Group S.A.