Bouwfonds resi fund spends EUR 36m in Germany

Bouwfonds European Residential Fund has acquired residential properties in the German cities of Düsseldorf, Hamburg and Erlangen for just over EUR 36 mln.

The acquisitions increase in the fund's real estate assets under management to EUR 268 mln.

The property in Oberbilk, Düsseldorf was completed in 2009. It was purchased from a private owner/property developer, and consists of 23 residential units and one commercial unit. The gross initial rate of return is 5.8% for an investment of EUR 5 mln.

The second asset is in Eimsbüttel, Hamburg. The seller of this building with 20 residential units is a Danish joint-stock company. The investment totals EUR 6.4 mln and the gross initial rate of return is 5.2%.

The third investment relates to a portfolio in Erlangen which was acquired for EUR 24.8 mln. The portfolio consists of six properties with a total of 335 residential units. The fund plans a 'vigorous programme of modernisation' in the coming years. The gross initial rate of return was not disclosed.