German listed real estate company Branicks Group has sold a portfolio of eight companies with nine commercial properties to VIB Vermögen for €94 mln.
The nine properties, now owned by VIB, are primarily multi-tenant office buildings spanning 81,113 m2 across Baden-Württemberg, Hesse, and Hamburg. These properties generate approximately €16 million in annual rent.
The sale of the portfolio, coupled with robust rental income and proceeds from the completed Global Tower project in Frankfurt, has significantly improved Branicks’ financial health. The company is actively working to reduce its debt levels further in the coming weeks.
The transfer of the assets supports the strategic development of VIB, in which Branicks holds around 69%, into a diversified real estate company with logistics and office classes and into a major portfolio holder within the Branicks Group.
Sonja Wärntges, CEO of Branicks, commented: ‘In addition to an extremely successful letting business in recent months, we are also making excellent progress with our financial consolidation and the implementation of our restructuring plan and our 2024 transaction targets and are very confident that we will meet our 2024 annual targets in all components.’
On 1 July, Branicks Group announced it had achieved over 50% of its sales target 2024 in its Commercial Portfolio in the first six months of the financial year, notarizing sales of over €300 mln. In its annual outlook for the Commercial Portfolio, Branicks had set a sales target of €500-600 mln for the year as a whole.
As of 31 March 2024, Branicks Group managed properties with a market value of €13.1 bn in the Commercial Portfolio and Institutional Business segments.
