Estavis buys Berlin housing portfolio

German property firm Estavis has completed the acquisition of 3,200 apartments in Berlin's Hohenschönhausen district from a Danish investor.

Estavis acquired the portfolio from the Berlin business of Aalborg-based Kristensen Real Estate for €110 mln.

Around 2,000 housing units in need of refurbishment were already resold to two institutional investors for around €65 mln while the remaining 1,200 apartments, which provide annual rents of €4.2 mln, will be retained by Estavis.

''The extra revenues generated by reselling the partially refurbished or un-refurbished housing units made it possible for us to acquire our comprehensively modernised portfolios at a price below the market value,' said Jacopo Mingazzini, executive board member of Estavis.

According to Mingazzini, the current low rent average of €5 per m2 on unexpired leases implies 'considerable potential for further appreciation' in the years to come.

'The acquisition moves us a big step closer to our medium-term goal of expanding the portfolio to 10,000 apartments,' Mingazzini added.