Cologne-based Colonia Real Estate has rejected the voluntary public takeover offer tabled last year by Hamburg-based Tag Immobilien. The management and supervisory boards of Colonia described the EUR 5.55 per share offer as inadequate and said they could not recommend it to shareholders.

Colonia also said that the implementation of the offer could affect the listed company's net assets, financial position and results.

Colonia Real Estate is one of the few exchange-listed real estate investment and asset management groups in Germany, with more than EUR 2.1 bn in property under management.

Hamburg-based Tag Immobilien, which is also listed, launched a EUR 174 mln voluntary takeover offer for Colonia in November last year.

If successful, the operation would create a company with over EUR 4.3 bn of assets under management. Tag said that it plans to finance the acquisition with the sale of roughly 12 million new shares to its shareholders and the issue of EUR 70 mln in convertible bonds.