Listed German residential landlord Deutsche Wohnen has acquired a portfolio of close to 4,000 housing units in Berlin for around €655 mln.
The purchase price amounts to €2,390 per m2, implying a multiple of 20x based on market rents and a multiple of 30x based on in-place rents.
The acquisition will be financed through the proceeds of the recent successful placement of new shares and convertible bonds of Deutsche Wohnen.
Deutsche Wohnen said the Berlin portfolio consists mainly of high quality pre-war buildings constructed at the beginning of the 20th century, with limited investment needs. The portfolio has an average montly in-place rent of €6.92 per m2 at the acquisition date and the vacancy rate of almost 7% provides further potential for upgrades.
Initially, the properties are expected to contribute around €22 mln of net cold rent per year, leading to an EBITDA of around €15 mln.
The acquisition is expected to close in the second quarter of 2017.
Expansion into care homes
In total, Deutsche Wohnen purchased more than 4,100 residential and nursing beds in the second half of 2016. It also continued its push into the retirement home sector early this year by taking over Hamburger Senioren Domizile (HSG) in a deal including both the company's properties and the operation of three HSG facilities.
Last August, the company acquired the Berlinovo care home portfolio of 28 facilities for €420 mln.
