UK private equity firm Benson Elliot has purchased a 74.9% stake in GWB Elstertal Geraer Wohnungsbaugesellschaft (GWB) from its insolvent parent company, Stadtwerke Gera.
Comunal housing company GWB owns and manages around 6,700 residential units, encompassing 402,000 m2 across 330 assets, in Gera, the third-largest city in Germany’s Thuringia region. The remaining shares in GWB are owned by the City of Gera.
Philipp Braschel, Benson Elliot Partner, said: 'In a sustained low interest rate environment the German residential sector continues to offer attractive investment opportunities. We look forward to moving on from the current uncertainty surrounding GWB, which has been unsettling for tenants, employees and the local community.'
Benson Elliot said it intended to refurbish and lease the company's core residential properties, introducing new letting and operational management processes, while disposing of non-core assets. Frank Hirling has been hired to oversee the team that will implement the value-add strategy.
Benson Elliot was advised by Greenberg Traurig, Deloitte and VALTEQ.
