Frankfurt-based Corestate Capital has acquired six residential portfolios spread across Germany for EUR 58 mln. The portfolios include 1,640 residential units in Frankfurt/Main, Hanover, Leipzig and Erfurt. The net initial yield of the transactions ranges between 8.5% and 9.5%.
Frankfurt-based Corestate Capital has acquired six residential portfolios spread across Germany for EUR 58 mln. The portfolios include 1,640 residential units in Frankfurt/Main, Hanover, Leipzig and Erfurt. The net initial yield of the transactions ranges between 8.5% and 9.5%.
In a press release, the German asset management company indicated that the average vacancy rate of the assets is about 10% and that the transactions were carried out at a price that is 21% under their current market value. 'While stock listed companies acquire their portfolios with a premium, we acquire the portfolios under their current value', said Corestate's chairman Ralph Winter.
The acquisitions are financed through Corestate German residential, a EUR 2.5 bn property fund managed by Corestate in Zurich.
