Listed German residential property company Gagfah has announced an offer to buy back up to EUR 75 mln of its shares. The offer will be in the form of a modified Dutch auction with an offer price of between EUR 3.50 and EUR 5 per share.

The offer price, which will be the same for all shares, will be calculated on the basis of the total number of tendered shares and the prices within the offer price range specified by the shareholders, and will correspond to the lowest price which allows the company to buy EUR 75 mln of its shares.

The acceptance period started on 6 September and ends on 4 October 2011.

Gagfah said it reserves the right to increase the volume of the offer or the pricing levels.

Fortress Investment Group has stated that the funds it advises and who hold Gagfah shares will not accept the offer.

Gagfah has 155,000 apartments across the Germany, making it the largest residential property company in the country.