Deutsche Annington

Deutsche Annington was created in 2001 when Terra Firma acquired 64,000 residential properties from the German Federal Railways. The company was set up to own, maintain and rent the properties and sell individual units to tenants and third parties. Through add-on acquisitions, Terra Firma tripled the size of the company, building the largest private residential landlord in Germany with nearly 180,000 owned units. Asset-Backed: German residential real estate is an intrinsically low-risk asset class. The original transaction was made up of approximately 64,000 residential properties geographically spread across Germany. The portfolio generated a steady and reliable rental stream. Requiring Fundamental Change: The housing had been owned and managed on a not-for-profit basis by ten separate companies. As a result, there was enormous scope for integration and efficiency savings and the professionalisation of an under-managed sector. It also provided the opportunity for people to buy their own homes through socially-responsible privatisation. Transforming strategy Strengthening management Developing through capital expenditure Building through mergers and acquisitions Lowering the cost of capital to create extra upside Status of Investment: The Deutsche Annington investment has been fully realised. In 2006, Terra Firma raised €2.1 billion‎ through TFDA in order to buy 82.5% of Deutsche Annington, along with a minority investor, from TFCPI. TFDA acquired 82.5%, with the balance being acquired by CPI. In 2013, Deutsche Annington completed an IPO and began trading on the Frankfurt Stock Exchange with a free float of 15.6%. In May 2014, with Terra Firma’s ownership of Deutsche Annington at 67.3%, TFDA distributed its Deutsche Annington shares on a pro rata basis to the TFDA investors. Back to list of investments