Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

DOUGLAS, ISLE OF MAN-The AIM-listed Deutsche Land, which has a portfolio of some €560 million in office, retail and hotels in Germany, is to make a placing and subscription of ordinary shares that will, subject to approval of shareholders and the UK Takeover Commission, bring in the Romanian company Black Sea Global Properties as majority shareholder with 54% of its equity.

Deutsche Land CEO David Maxwell told PFE that the investment, if it goes through in full, will cut loan to value on the portfolio to around 75% from the current 87%. "Even if all each financing is ring-fenced I feel that it is best if you are managing real estate assets in the current climate to have a bit more money around you," he said. Maxwell, who co-founded the company with the late Klaus Fassbender, will remain CEO even after BSGP takes control.

Separately BSGP also announced a cash offer to acquire 100% of Rutley European Property. The offer is pitched at 6 pence in cash per Rutley preference share, valuing the existing issued equity at £12.6m and Rutley at an enterprise value of £447 million including net debt of £434m as at end-December. The offer represents a premium of 107% to the closing price of 2.9p per Rutley share on 27 March, before the announcement of an approach. In January, AIM-listed Romanian property group Fabian Romania backed a takeover offer worth €50.8 million from BSGP, which built a 25.2% stake last November.