GSW Immobilien buys 2,600 apartments for EUR 147m

GSW Immobilien has continued its investment drive with the purchase of a 2,600-property strong housing portfolio in Germany for around EUR 147 mln.

The Berlin-based residential group acquired the portfolio from Zentral Boden Immobilien (ZBI), a German initiator for closed-end funds, for EUR 970 per m². The transaction is expected to close by the end of the year.

Around 82% of the properties are situated in Berlin's districts of Neukölln (35%), Mitte (21%), Tempelhof-Schöneberg (12%), Reinickendorf (11%) and Steglitz-Zehlendorf (3%). The other units are in the cities of Duisburg, Essen, Erfurt and Magdeburg.

'We plan to resell the 470 residential units outside of Berlin in the medium term,' explained Jörg Schwagenscheidt, management board member of GSW Immobilien with responsibility for acquisitions. The vacancy rate of the Berlin assets is 1.6%.

GSW has expanded its portfolio by a total of 7,000 apartments since October. 'We have now invested around EUR 190 mln from the capital increase,' noted Thomas Zinnöcker, CEO of GSW Immobilien.

The company will finance the latest transaction through part of the net proceeds from the issue of convertible bonds, as the property portfolio is being acquired from the seller unencumbered, added CFO Andreas Segal. Starting next year, the new portfolios will have a positive impact on GSW's operating margins, generating an FFO contribution of EUR 14.5 to EUR 15.5 mln.