REAL ESTATE – Aareal Asset Management has acquired a substantial residential portfolio for the Aareal German Residential Fund.
The portfolio, comprising of about 1,400 units, was sold by a subsidiary of German insurer Allianz Group, represented by Allianz Immobilien, the real estate arm of the firm.
Neither of the firms wanted to disclose the value of the transaction.
The portfolio is predominantly located in Hamburg, Hannover, Germany’s Rhineland and in the Rhine-Main area and also comprises 60 commercial units.
The management of the portfolio will be taken over by Deutsche Bau- und Grundstücks-AG, (BauGrund), another subsidiary of Aareal Bank, specialised in the management of major residential portfolios.
The residential fund, which will invest about €800m, focuses on the acquisition and later disposal of residential property assets in economically strong regions in Germany.
Charles Pridgeon, chief executive officer of Aareal AM, said that further investments with a value of several hundred million euros are in the pipeline for the current fiscal year and the first quarter of 2007.
Currently, Aareal Asset Management is in a number of "advanced purchase negotiations" to achieve this target, according to the firm.