ADO Properties has bought a Berlin residential portfolio for €375m from Deutsche Wohnen.
The portfolio of 5,750 residential units, in Berlin’s Spandau and Reinickendorf districts, takes ADO’s portfolio to around 14,000 residential units.
The portfolio has an in-place rent of €5.10 sqm per month and a 3.5% vacancy rate.
According to the CBRE/Berlin Hyp Housing Market Report, Berlin’s average rent for new lettings in Spandau is €6.75 sqm per month, in Reinickendorf, €7.08 sqm per month.
Rabin Savion, chief executive at ADO Properties, said: “We see great value potential and high demand for apartments in the outskirts of Berlin, since rent levels are continuously rising in inner-city locations over the past years, along with a decline in available residential units.
“We are convinced demand will grow in the outskirts to benefit from more affordable rents.”
Savion said his company had developed a five-year investment plan.
“We are a long-term investor, and our targets are to achieve a sustainable housing amenity for tenants and a reduced requirement for future maintenance measures for the landlord,” he said.