GERMANY – US and German institutional investors have apparently piled into a new issue of stock by German real estate company Adler.

Buyers of the stock – designed to give the company extra flexibility – had a “large interest”, Adler said. They included unnamed but “well-known” institutions as well as private shareholders.

The capital increase will boost the company’s capital stock to €15m, up from €10m. The proceeds will be used for project development and portfolio extension.

The move comes amid a resurgent German real estate market, with investors trying to gain exposure to the market.

Private equity funds, for example are known to buy packages of condos at a unit cost of around €35,000 where yields are high.

“I think demand and supply is getting better,” said independent German asset manager Dr. Jens Ehrhard recently. “There’s some hidden growth stories.”

Adler - under new management since 2005 – was advised by investment banks Dresdner Kleinwort and Hypovereinsbank.

The firm said the complete placement of the shares demonstrated the capital market’s trust in its new management.

Adler has seven properties in large German cities with a total area of nearly 25 acres. In the Netherlands, the company participates in a joint venture with 15% on the development of an “important” project near Schiphol.