REAL ESTATE - Eurocastle, the largest listed owner of German commercial real estate, has hinted at imminent acquisitions in its new annual report.

The offshore company, which is managed by US investment firm Fortress, said it was looking at “numerous potential acquisitions”.

In a letter to shareholders, chief executive Wesley Edens said the firm would “continue our focus on the German commercial real estate market”, identifying “tremendous acquisition opportunities” as a result of corporate and government restructuring, which had “created a huge pipeline of real estate assets”.

The firm last year acquired around €2.2bn of German commercial real estate, bringing its total assets to €4.4bn. The acquisitions included three portfolios of grocery and general stores worth €212m and a portfolio of bank branches from Dresdner acquired for €2bn.

Morgan Stanley analyst Martin Allen recently rated Eurocastle overweight as he significantly cut the ratings across European property companies.

Meanwhile, German real estate company Colonia attributed first-quarter profits of €25m to the strength of its German residential portfolio and an acquisition spree during which it bagged real estate at well below market value.

The firm said it would complete new investments this year worth €500m. It also forecast strong growth in its real estate asset management business.