Domicil Real Estate has bought a portfolio of 86 residential properties across Germany from a Swiss Life Asset Managers fund.
The Munich-headquartered real estate investment firm has paid an undisclosed amount to buy the NOW portfolio which comprises 2,535 rental units.
The residential units are spread across regions around Lübeck, Berlin, Bremen, Dresden, Leipzig, Rostock, Hanover, Erfurt as well as Dortmund, Gelsenkirchen and Dusseldorf.
Andre Schmöller, CIO of Domicil Real Estate, said: “The purchase of the NOW portfolio is another important step in our growth strategy and promises enormous development potential. The concentration on economic conurbations means that we can expect units to be easily lettable and a high level of demand for the condominiums.
“The current vacancy rate also provides an opportunity to make more rented housing available and to stabilise rental income.”
Michael Essl, CIO of Swiss Life Asset Managers in Germany, said: “Despite this sale, real estate remains one of our most important asset classes. In terms of our active portfolio management, this is an important step for us to further diversify our portfolio.”
Details of the Swiss Life fund involved in the transaction were undisclosed.
To read the digital edition of the latest IPE Real Assets magazine click here.