French REIT Foncière des Régions (FdR) has invested €367 mln in a residential property portfolio in Hamburg and the hotel sector across Germany.

French REIT Foncière des Régions (FdR) has invested €367 mln in a residential property portfolio in Hamburg and the hotel sector across Germany.

Both transactions were reported earlier by PropertyEU.

In January 2015 the REIT's residential arm acquired 2,000 homes located in the Hamburg area. The investment volume of €239 mln reflects a gross yield of 5.5% and an average price of €1,860 per m2.

FdR is building up its position in Hamburg because of the market’s high demographic growth and strong demand for housing. 'This acquisition enables us to pursue the strategy of geographical diversification of the portfolio towards cities with an important growth potential, as well as the policy of improving the quality of the portfolio in Germany,' the investor said.

Budget hotels
The second transaction, in March 2015, involved the acquisition of 22 B&B hotels in key German cities. The investment volume of €128 mln reflects a net yield of 6.4%.

FdR said it is convinced that the budget hotel segment has real growth potential in Germany. The acquisition also strengthens FdR's partnership with the B&B Group and complements its existing portfolio of 187 hotels in Europe of which seven are currently under construction.

The portfolio comprises 1,700 rooms and an average residual term on the leases of 18 years. Most of the hotels are less than five years old.

In total, these acquisitions are included in the €1 bn investment pipeline group share in offices, hotels and residential, announced by FdR for 2015. Following the transactions the company has €3.5 bn of assets in Germany, out of a total of €16 bn of assets across France, Germany and Italy.