Aareal Bank

Last updated
Aareal Bank AG
Company type Public ( Aktiengesellschaft )
ISIN DE0005408116
Industry Financial services
Founded1922;102 years ago (1922)
Headquarters,
Key people
Products Structured Property Finance and Consulting Services for the housing sector
Total assets 45.5 billion (2020) [1]
Owner
  • Atlantic BidCo GmbH
  • (2023–present)
Number of employees
2,982 [1]
Website www.aareal-bank.com

Aareal Bank AG is an international company listed on the MDAX index with headquarters in Wiesbaden, Germany, [2] which traded as DePfa Deutsche Bau- und Bodenbank AG and formed part of the DePfa Gruppe until 2002.

Contents

The company is represented on three continents (Europe, North America and the Asia-Pacific region) and oversees property financing in more than 20 countries. It has been listed on the German stock exchange since 2002.

In 2023, Atlantic BidCo GmbH (ABC) took control of Aareal Bank after a public takeover offer was completed. ABC is a company formed by a group of investors led by Advent International, Centerbridge Partners and a subsidiary of CPP Investments. [3] [4] [5]

Aareal has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank. [6] [7]

History

The company's history dates back to two institutions: Preußische Landespfandbriefanstalt (founded in 1922) and Deutsche Wohnstättenbank AG (founded in 1923), both of which were based in Berlin. Deutsche Wohnstättenbank AG was renamed Deutsche Bau- und Bodenbank in 1926.

In the years of the Nazi rule, the bank grew rapidly thanks to the bridging loan business which mainly targeted the funding of settlement and housing construction. These sectors boomed following the massive increase of the armament industry that demanded accommodation for their workers, often designed as National Socialist ideal settlements. [8] :39 The prospect of business opportunities due to the boom of the armament industry also fostered the bank's department for industrial loans. Millions of Reichsmark were granted to companies like Ruhrgas AG, Vereinigte Stahlwerke AG or Daimler-Benz AG. [8] :41 At the time of the Nazi seizure of power in 1933, already 63 of 267 employees belonged to the Nazi Party. [8] :50 While chairman of the supervisory board Otto Kämper was a member as well and publicly praised the success of the government in the field of housing, democrats such as Arnold Knoblauch or Eberhard Wildermuth, who was in contact with conspirators of the 20 July plot, were still holding a seat on the supervisory board until World War II. [8] :48

Preußische Landespfandbriefanstalt was given the name Deutsche Pfandbriefanstalt in 1954. In 1979, Deutsche Pfandbriefanstalt acquired a majority interest in Deutsche Bau- und Bodenbank. It traded as public limited company under the name Deutsche Pfandbrief- und Hypothekenbank AG from 1989, before going public in 1991 and opening its first foreign branch in Amsterdam in the same year.

In 1999, Deutsche Pfandbrief- und Hypothekenbank AG was renamed DePfa Deutsche Pfandbrief Bank AG and transferred all property activities to Deutsche Bau- und Bodenbank, which was also given the name DePfa Bank AG BauBoden at this time. In 2002, the bank was divided into Aareal Bank AG (formerly Deutsche Bau- und Bodenbank), a property finance bank with headquarters in Wiesbaden, and DePfa BANK plc, a public finance bank based in Dublin. Since 2006, the company has focused on the Commercial Property Financing and Consulting/Services segments. [9]

In 2023, the bank became private and retired from the stock market, continuing to issue bonds. [10]

In March 2024, the owners of Aareal Bank, led by Advent International and Centerbridge Partners, chose Arma Partners to sell Aareon’s technology division. [11]

Bodies

Hermann J. Merkens has been chairman of the management board of the company since 2015. The supervisory board members are elected for a period of five years each. The current term of Marija Korsch as chairman of the supervisory board began in 2013. [12]

Shareholder structure

100% Free float

(as of 31 December 2015) [2]

Subsidiaries

The Aareal Bank Group includes the following companies: [2]

CompanyDescriptionRegistered officeCapital share
Aareal Bank Asia LimitedFinancings for office buildings, hotels, logistics facilities, retail properties and residential properties in selected markets Singapore 100 %
Aareal Capital CorporationFinancings for office buildings, hotels, logistics facilities, retail properties and residential properties in selected markets New York 100 %
Aareal Estate AGManagement and consultancy firm for commercial properties in Germany and abroad Wiesbaden 100 %
Aareal First Financial Solutions AGDevelopment and implementation of payment transaction solutions for Aareal Bank Mainz 100 %
Aareal Valuation GmbHValuation company Wiesbaden 100 %
Aareon AGEurope-wide consultancy and IT systems house for the property sector Mainz 70 %
Deutsche Bau- und Grundstuecks-AktiengesellschaftSpecialist property management service provider; real estate asset management service provider for institutional and private investors, municipalities and the Federal Government Bonn 100 %
Deutsche Structured Finance GmbHStructuring, launching and placing, as well as subsequently managing closed-end funds, particularly involving property investments Wiesbaden 100 %
plusForta GmbHSpecialists in online sales of deposit guarantee insurance product Düsseldorf 100 %
Westdeutsche ImmobilienBank AGSpecialist bank that focuses on commercial real estate financing Mainz 100 %

See also

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References

  1. 1 2 "Annual Report 2020" (PDF). Aareal Bank AG. Retrieved 21 September 2021.
  2. 1 2 3 "Annual Report 2015" (PDF). Aareal Bank AG. Archived from the original (PDF) on 2016-04-11. Retrieved 30 March 2016.
  3. "Investment agreement and takeover offer". Aareal Bank. Retrieved 2023-08-13.
  4. "Investments - Advent International". Advent International. Retrieved 2023-08-13.
  5. "Hengeler Mueller advises Advent and Centerbridge on the completion of the takeover offer for Aareal Bank". Hengeler Mueller. Retrieved 2023-08-13.
  6. "The list of significant supervised entities and the list of less significant institutions" (PDF). European Central Bank. 4 September 2014.
  7. "List of supervised entities" (PDF). European Central Bank. 1 January 2023.
  8. 1 2 3 4 "Trusted since 1923. 90 Years Aareal Bank Group (Festschrift)" (PDF). Aareal Bank AG. 2013. Retrieved 2020-05-11.
  9. Aareal Bank AG: Corporate history
  10. "Germany's Aareal warns one quarter of U.S. office loans bad". Reuters. Archived from the original on 2024-04-21. Retrieved 2024-04-21.
  11. "Aareal Bank owners hire advisers to sell property lender's tech arm, sources say". Reuters. Archived from the original on 2024-04-21. Retrieved 2024-04-21.
  12. Aareal Bank AG: Company profile