CBRE Investment Management (CBRE IM) has exchanged contracts to acquire a residential portfolio of five multi-family assets providing 1,350 apartments in Germany for a total of €560 mln. The vendor is German listed group Vonovia.
The entire residential portfolio, all newly built or delivered in the next few months, comprises five buildings of which two are located in Berlin, two in Munich, and one in Frankfurt. The assets are centrally located and are well-connected with public transport and local amenities are in close proximity.
Two of the five properties are in the final stage of construction with completion expected by end of August 2023.
In a statement, Vonovia said that the book value of the properties as of Dec. 31, 2022, and the anticipated costs for completion amount to around €600 mln. The closing of the sale is expected during the second and third quarter of 2023.
‘To have secured this deal in Germany – one of the strongest residential markets in Europe - represents the strength of the CBRE IM platform. With long-term structural drivers, the residential sector is proving attractive to investors, and we will continue to seek investment opportunities with the aim to invest €1.5 bn across Europe this year,’ commented Marius Schöner, head of EMEA Residential Operator Division at CBRE Investment Management.
With this acquisition, CBRE IM’s residential assets under management in EMEA are circa €6.8 bn for Direct Real Estate Strategies.
CBRE IM was advised by E&Y (tax and financial), Linklaters (Legal) as well as CBRE Capital Markets and CBRE Building Consultancy.
The deal follows Vonovia's sale just last month of a 30% stake in Südewo to Apollo for €1 bn. The investment was made at nearly book value. Vonovia will continue to control, operate and consolidate the portfolio, which comprises more than 21,000 residential units in locations across the southwestern state of Baden-Württemberg.
