New York-based alternative investment manager Angelo, Gordon & Co has sold three German multifamily portfolios comprising nearly 5,000 residential units to Proprium Capital Partners together with Forte Group, as well as Valero Partners in a seperate transaction.
The deal volume for the apartments, which represent 300,000 m2 of rentable space, was not disclosed.
The majority of the properties are in the German state of North Rhine-Westphalia, primarily in key residential locations in the cities of Dortmund, Bochum and Duisburg.
'We look for opportunities across all use types. In the case of multifamily residential there is a fundamental demand/supply imbalance and strong demand for stabilized assets, which provides an attractive backdrop for potential investments in the value-add segment, that might offer significant potential for valuation appreciation through active management, capital investments, and repositioning,' said Stefan Doerffler, director and head of Germany at Angelo, Gordon.
Angelo, Gordon assembled the distressed properties over the last four years. According to the investment manager, at the time of their acquisitions the portfolios were 'vastly underperforming and were held in inefficient and undercapitalized structures'. Angelo, Gordon said it invested around €18 mln into renovation of the units.
The company previously repositioned a mixed-use inner city complex in Düsseldorf before selling it to a German core investment manager at the end of 2016.
