In its biggest disposal to date, Swiss property investor Corestate Group has sold a portfolio of 8,200 German residential units to Frankfurt-listed Adler Real Estate.

In its biggest disposal to date, Swiss property investor Corestate Group has sold a portfolio of 8,200 German residential units to Frankfurt-listed Adler Real Estate.

The parties agreed to keep the sales price confidential. The transaction will take the form of a share deal.

The portfolio comprises 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. The portfolio has a total rental space of around 542,000 m2.

Thomas Landschreiber, chief investment officer of Corestate Capital, commented: ‘This transaction marks the greatest sale since the foundation of the Corestate Group. Through implementing our capital investment programme as well as operating in the immediate vicinity of the assets we were able to successfully develop the operational income of the portfolio. By that we eliminated the existing maintenance backlog and improved the overall quality of the properties.’

The transaction is the second between the two companies this year. In February, Adler bought 2,400 residential units in Northern Germany from Corestate. The financial details of that deal were not disclosed either.

Corestate has been capitalising on its skills as a turnaround specialist in recent months. In March, it also sold a rejuvenated residential portfolio to two unidentified institutional investors for €77 mln.

Headquartered in Zug, Switzerland, the company specialises in turning around under-performing residential property portfolios in Germany. The business has invested more than €3 bn in the real estate market both through direct and indirect transactions since it was founded in 2006.

Following this latest transaction, Landschreiber said Corestate will expand its active asset management approach to other ‘interesting’ European real estate markets.