Germany's CPI, Aroundtown to buy Globalworth in $1.88 billion real estate deal

Germany’s CPI Property Group and Aroundtown SA on Wednesday offered to buy London-listed Globalworth Real Estate Investments in a deal valued at about 1.57 billion euros ($1.88 billion).

Shareholders in Globalworth, which mainly operates in the office sector in Poland and Romania, will be entitled to get 7 euros per share in cash, CPI said.

The German consortium said it currently holds about 51.5% of Guernsey-incorporated Globalworth. The offer represents a premium of nearly 20% to Globalworth’s last close.

Office real estate has taken a hit during the COVID-19 pandemic as restrictions forced people to work from home, while slow vaccination roll-outs in Europe has cast doubts on the speed of reopening and return to work plans.

CPI’s portfolio consists of office properties, retail, residential as well as hotels and resorts. Aroundtown invests mainly in commercial and residential real estate.

Globalworth, whose stock has lost about 17% in market value so far this year after a 23% fall in 2020, did not immediately respond to a request for comment.