GERMAN - Colonia Real Estate AG has bought roughly 1,600 apartments in the Hamburg area for less than €40m.

The Cologne-based firm said it acquired the residential portfolio through its wholly owned subsidiary CRE Wohnen GmbH.

It’s bought around 100,000 square meters of rentable space at three locations in the greater Hamburg area.

It said: “The portfolio currently yields an annual net rental of approximately €4.9m.”

Colonia added it plans to incorporate the apartments into its real estate inventory in order to benefit from the profitable annual rate of return and the large cash flow.

It said the move was part of its strategy of balancing an expansion of inventory and the partial sale and privatization of properties.

“This enables Colonia to react fast and flexibly to opportunities while at the same time pursuing a long-term establishment of assets clearly recognizable in the financial statement.”

Colonia focuses on the purchase and asset management of underrated or distressed properties.