Frankfurt-listed Deutsche Annington led the real estate investor charge into apartments during September, which also saw large residential deals in Ireland, Sweden and Poland.

Frankfurt-listed Deutsche Annington led the real estate investor charge into apartments during September, which also saw large residential deals in Ireland, Sweden and Poland.

Germany's largest listed residential landlord paid €320 mln for a portfolio of over 5000 apartments plus 210 ancillary commercial units. Half of the assets are located in Berlin, with the remainder spread over the other cities.

This was the largest reported European real estate transaction recorded by PropertyEU Research during the relatively sedate review period of 1-30 September 2014. In all, we recorded 37 transactions of €20 mln plus, giving a total big-ticket volume for the month of €3.9 bn. Residential investment transaction accounted for just under €1 bn, or 26% of the total.

DUBLIN DEALING
Another stand-out residential transaction took place in the recovering Dublin market. Canadian-backed REIT Irish Residential Properties (Ires) positioned itself to become the largest private residential landlord in Ireland following the planned acquisition of €211 mln of Dublin apartments.

The National Asset Management Agency (Nama), Ireland's bad bank which is being wound up, has selected Ires as the preferred bidder for the Orange portfolio.

Orange is the first residential portfolio brought to market by NAMA and the largest residential portfolio ever offered for sale in Ireland. It comprises 761 suites in four properties in the developments at Charlestown, Lansdowne Gate, Beacon South Quarter and Bakers Yard, in the Greater Dublin area. Two of the properties include a total of 3,180 m2 of commercial space.

With the closing of the deal in October the REIT's property portfolio will grow to a total of 1,202 apartment suites, transforming Ires into Ireland’s largest non-governmental residential landlord. Ires raised €200 mln in an initial public offering on the Dublin stock exchange in April. The company is externally managed by Capreit, one of the largest residential rental REITs in Canada with over 41,200 units and a market capitalisation of C$2.4 bn (€1.65 bn).

SWEDEN
Victoria Park significantly grew its portfolio of Swedish homes at the beginning of the review period. The Stockholm-listed property firm acquired a residential portfolio in the Swedish city of Eskilstuna for SEK 1.7 bn (€180 mln).

Victoria Park said that it has entered into an agreement with vendor, the family owned business Fogelvik Holding, to acquire 3,100 apartments with a lettable area of 244,000 m2. Eskilstuna is located about 112 kilometres west of Stockholm.

The portfolio is fully leased, generating an average annual rent of SEK 880 per m2. Closing is expected for December 2014. Following the transaction, Victoria Park owns a portfolio with a combined lettable area of 613,000 m2 across 7,600 apartments. The deal lifts the portfolio value from SEK 3 bn to around SEK 4.7 bn, reflecting a net initial yield of 5.5%.

POLAND
One of the most eye-catching and troublesome residential projects of recent years found a home with a US investor during September but only after a significant re-pricing.

Eight years after receiving the green light from local authorities, Warsaw’s flagship Zlota 44 tower development has been sold – unfinished – for one third of its developer’s total investment volume.

US-based real estate investment manager Amstar has joined forces with Poland's BBI Development to acquire the Zlota 44 residential tower development from previous landlord and developer Orco Property Group for €63 mln in cash. The deal marks a 65% drop on the total investment of more than €180 mln which has been spent on the project. It also marks the entry by Denver, Colorado-based Amstar into the Polish real estate market, and represents the first partnership between Amstar and BBI.

'After in-depth analysis of market trends and potential partners, we are happy to join forces with BBI Development, and we look forward to working with them to apply our hands-on development capabilities to ensure a successful completion,' said Jason Lucas, president of Amstar Global Advisers.

In Warsaw, BBI has already developed major projects including Plac Unii - a retail and office complex providing 56,000 m2 of space and the 75,000 m2 mixed-use Centrum Praskie Koneser project.