Colonia Real Estate has announced the signing of a contract to purchase 2,199 residential units in Greater Berlin for EUR 72.50 mln. The portfolio comprises 121,000 m[sup]2[/sup] of residential and 14,000 m[sup]2[/sup] of office space as well as 1,013 parking spaces.
Colonia Real Estate has announced the signing of a contract to purchase 2,199 residential units in Greater Berlin for EUR 72.50 mln. The portfolio comprises 121,000 m2 of residential and 14,000 m2 of office space as well as 1,013 parking spaces.
The current vacancy rate is at around 10% and Colonia said the portfolio was acquired for a multiple of 10.9 times the net rental income of around EUR 6.61 mln per year. The purchase price was equivalent to EUR 537 per square metre.
Following the transaction closing, expected before the end of 2006, Colonia will have 4,799 residential units in Greater Berlin and a total of around 9,000.
'We see further upside potential on residential real estate in Berlin and we are convinced about the value potential of the currently acquired portfolios. Cost reductions and an active management will reduce vacancy over time and enhance cash-flows substantially', Colonia's ceo Stephan Rind said in a statement.
The company plans further acquisitions in residential real estate, especially in Berlin.
