Listed German investor Deutsche Annington has bought a portfolio of over 5,000 apartments plus 210 ancillary commercial units located mainly in Berlin from CitCor Residential Group, a joint venture of Citigroup Property Investors and Corpus Sireo.
Listed German investor Deutsche Annington has bought a portfolio of over 5,000 apartments plus 210 ancillary commercial units located mainly in Berlin from CitCor Residential Group, a joint venture of Citigroup Property Investors and Corpus Sireo.
Financial details were not disclosed. However, Deutsche Annington indicated that the assets were acquired at a factor of 14.4 times the net current rents, giving the deal a total value of around €320 mln.
The package, with a total usable area of 344,000 m2, contains assets spread across a number of cities including Berlin, Dresden, Jena, Leipzig and Erfurt.
'The purchase of the new units represents another step in our growth strategy to generate value from our existing portfolio and to develop new, high-quality portfolios with the acquisition,' said Rolf Buch, CEO of Deutsche Annington.
'The new apartments are located in growth areas in Germany with attractive markets. In addition, we are raising our countrywide presence as Germany's largest apartment company with the acquisition of the new apartments in metropolitan areas of the new federal states,' added Klaus Freiberg, member of the management board of Deutsche Annington.
The package generates €22.4 mln in net rents and has a vacancy rate of 4.8%. Around half of the assets are located in Berlin, bringing the total number of properties managed by Deutsche Annington in the German capital to 16,200.
Closing of the deal is expected by year-end.
Deutsche Annington owns a portfolio of 185,000 own-managed residential units, 26,800 residential units managed for third parties as well as around 3,250 employees.