Cerberus Acquires Speymill Deutsche Immobilien Assets out of Receivership

PR49362

FRANKFURT and LONDON, May 16/PRN=KYODO JBN/ -

An affiliate of Cerberus Capital Management, L.P. ("Cerberus") has entered into

a definitive agreement to acquire the assets of distressed company, Speymill

Deutsche Immobilien Company plc, from the Receivers. As a key part of this

transaction, Cerberus worked with the company's bank lenders to effect the

recapitalization of the assets through a restructuring of the company's 985

million euro of distressed bank loans, and the injection of capital in the form of

subordinated debt and equity that will be used primarily to pay down debt and

make improvements to the assets. The transaction is expected to close later

this week.

Ben Cairns, Receiver, of Ernst & Young, said: "This is a landmark

recapitalization and distressed loan restructuring which is to the mutual

benefit of the existing banks, stakeholders of the acquired assets, and the new

capital sponsor, Cerberus."

Cerberus has been an active investor in Germany since 2002. Cerberus, along

with a co-investor, launched Germany's largest initial public offering (IPO) of

2011 with the successful listing of Berlin-based GSW Immobilien AG, on the

Frankfurt Stock Exchange in April of last year. GSW was acquired from the State

of Berlin in 2004, and Cerberus led the restructuring of the company and

improvement of the assets.

Lee Millstein, Senior Managing Director at Cerberus, stated: "We are pleased to

work with Speymill Deutsche Immobilien's banks to lead the recapitalization of

the assets and the restructuring of its distressed loans. The banks benefit

from this transaction by having a large portfolio of non-performing loans

converted to performing loans, while stakeholders benefit from Cerberus

injecting new capital for improvements and leading the execution of a

turn-around of the assets."

The lenders are a consortium of banks led by Netherlands-based NIBC Bank N.V.

along with German banks HSH Nordbank AG and Norddeutsche Landesbank (NORD/LB.

Martijn Weinreich at NIBC, said: "Cerberus' creative, knowledgeable approach to

restructuring the portfolio's existing debt and its established track record in

Germany made it the ideal partner."

CORPUS SIREO has been engaged to coordinate asset management. GOAL will

continue to oversee day-to-day management of the assets. Engel & Volkers has

been retained to market individual assets to private investors in Germany after

capital and operational improvements have been implemented.

Kuna & Co. KG served as Cerberus' financial advisor on the transaction.

Freshfields Bruckhaus Deringer LLP provided legal counsel to Cerberus.

About Cerberus Capital Management, L.P.

Established in 1992, Cerberus Capital Management, L.P. is one of the world's

leading private investment firms. Cerberus has approximately US $20 billion

under management invested in four primary strategies: distressed securities &

assets; control investments; commercial mid-market lending and real

estate-related investments. From its headquarters in New York City and large

network of affiliate and advisory offices in the US, Europe and Asia, Cerberus

has the on-the-ground presence to invest in multiple sectors, through multiple

investment strategies in countries around the world.

SOURCE: Cerberus Capital Management, L.P.