Corestate sells 5,000-strong resi package to Gagfah

Swiss real estate investor Corestate Capital has announced the sale of a German residential property portfolio to German listed residential firm Gagfah.

The parties have agreed to keep the sales price confidential.

The portfolio includes around 4,960 residential units spread across several major cities in the state of North Rhine-Westphalia.

'Our specialised asset management team began to take the necessary steps to reposition and stabilise the portfolio as soon as we had acquired it,' commented Thomas Landschreiber, CIO of Zug-based Corestate. 'Committing a pinpoint cashflow, we refurbished parts of the portfolio, decreased vacancy rates, enforced market-consistent rent increases, and thereby created an increase in value and value retention of the properties.'

The deal follows Corestate's disposal over the summer of a portfolio of 8,200 German residential units to Frankfurt-listed Adler Real Estate.

The portfolio comprised over 7,700 residential and 490 commercial units spread across Germany, with a focus on the federal states of Saxony, Saxony-Anhalt and North Rhine-Westphalia.

Headquartered in Zug, Switzerland, Corestate specialises in turning around under-performing residential property portfolios in Germany. The management-owned company acts as an investor and asset manager.