EUROPE – Swiss real estate company Corestate has purchased two distressed portfolios in Germany.
The Zug-based property investor bought a mixed commercial and residential portfolio and a residential portfolio, worth €150m each.
Commenting on the purchase, Ralph Winter, founder and chairman at Corestate Capital, said: “Looking at the German real estate market in 2013, it is clear our strategy to focus on residential properties leads to sustainable added value in our investments.”
He said he was convinced there would be more interest in non-core residential properties both from German and foreign investors in the near future.
Corestate, which has purchased distressed portfolios before, will “immediately start to reposition and stabilise the portfolios”.
The first portfolio consists of 2,400 residential units in multi-family homes in conurbations in Northern Germany, as well as two core commercial objects in the inner cities of Berlin and Hamburg.
Corestate pointed out that the portfolio was bought “at a considerable discount” compared with the original price.
The second portfolio contains residential properties in various larger cities in the German province of North Rhine-Westphalia, including some small commercial units.
The company said the portfolio was under forced administration and needed a complete restructuring of the debt capital.
No names were given on the sellers, and no details were published on the actual purchasing price.