Listed Austrian property company Conwert Immobilien has stepped up its presence in Germany with the acquisition of a residential portfolio for around €179 mln.
Listed Austrian property company Conwert Immobilien has stepped up its presence in Germany with the acquisition of a residential portfolio for around €179 mln.
The purchase price includes planned investments of some €33 mln.
The deal covers 4,016 units, most of which are located in the core markets of Berlin, Leipzig and North Rhine-Westphalia. The units have a total rental space of 265,815 m2.
The portfolio was acquired from GE Capital Real Estate Deutschland, a division of US conglomerate General Electric, which is selling its entire portfolio of residential properties in Germany for strategic reasons.
The properties will boost Conwert’s existing German portfolio by 17% to around 27,500 units and the total rental space to two million m2.
‘Further growth in our German core markets will allow us to make more efficient use of our existing management structure without significantly increasing our cost base,’ said Johannes Meran, chairman of Conwert’s administrative board.
The company said the rental income from the properties, which currently stands at around €13.5 mln, will increase consistently through the investment of €33 mln over the next three years.
The transaction is due to be completed in the third quarter of 2013 with the new portfolio fully integrated by the end of the year.
