Ado Properties, the listed Berlin-based residential landlord, has announced the acquisition of 1,594 units in Berlin in separate transactions worth a total of €262.5 mln, or an aggregate yield of 3.5%.
Ado, which in July tapped the bond market for the first time with the issue of a €400 mln bond to fund acquisitions, said the properties include 1,467 residential units and 127 commercial units.
Closing of the transactions is expected to take place during the fourth quarter of 2017.
The assets are distributed across Berlin with around 25% in central locations. They have residential in-place rents between €4.2 m2/month to €7.9 m2/month generating €9.2 mln of net rents a year. The vacancy rate is 3.2%.
The company said it expects new letting rents between €6.5 m2/month and €11.0 m2/month, reflecting a reversionary potential of up to 86% with an average of 42%.
Together with the acquired assets Ado expects to take over €99.2 mln of loans with an average maturity of 8.4 years and an average interest rate of 1.9%. The remainder of the purchase price will be funded with existing liquidity.
Ado Properties is a pure-play, Berlin-based residential real estate company with more than 20,000 units.
