Citi Property Investors and Gazit-Globe are closing in on a proposed €800 million ($1.2 billion) investment in Vienna-listed European developer Meinl European Land.
Investors passed resolutions allowing the cash injection and restructuring of the firm at an extraordinary general meeting in Jersey yesterday.
In a statement, Meinl said gaining approval at the egm was the last significant condition to closing the investment in the company by Citi and its partner, which is an international developer listed in Tel Aviv. The close is expected to happen by the end of the month. Meinl will change its name to Atrium European Real Estate, the company added. Proposed chief executive, Rachel Lavine, said the parties were looking forward to implementing their plans.
The injection of fresh capital and proposed corporate governance changes follows a surprise share buyback by the company last August. Meinl’s decision to buy back 17 percent of its shares for €1.1 billion was done without shareholder approval leading to a loss of credibility and concerns about governance. The action sparked a strategic review of the company.
Meinl focuses on development in Central and Eastern Europe. As at 31 December 2007, it had 162 investment properties with a market value of approximately €1.9 billion and a large portfolio of development projects with a projected investment requirement of €3.3 billion. It also has a landbank of more than 1.8 million square meters.