REAL ESTATE - An unnamed north German pension fund has sold a 55-unit residential portfolio in Hamburg to property firm Hanseati for €4m.

The ageing portfolio of 55 housing units and 28 parking bays is located in Alsterdorf-Winterhude. The acquisition represents a yield of 7%.

"For every flat, there’s a tenant. It’s in a good area – and in our home market," said Hanseati spokesman Kai Nicolas Andritschke.

He said pension funds would continue to sell 40—50-year-old property portfolios and to chase newer developments because they were less dependent than real estate companies on high yields.

"The yields on new properties are too small for us, which is why we target older buildings," he said. "Insurance firms [and pension funds] can live with lower yields."