HSH N Real Estate sells Dresden apartment portfolio

HSH N Real Estate has sold a portfolio of apartments in the eastern German city of Dresden to a joint venture between Morgan Stanley Real Estate Funds (MSREF) and Arsago Real Estate for EUR 71.2 mln. The portfolio comprises a total of 1,887 residential units with a total lettable area of around 113,000 m².

HSH N Real Estate, the property division of Hamburg-based HSH Nordbank, has managed to successfully reduce vacancy rates in the portfolio from 13% to 8% since the beginning of this year. High vacancy rates are a problem in the Dresden residential market and elsewhere in eastern Germany. With the deal, MSREF and Arsago are said to be confirming their positive evaluation of the German residential market. Last year the two firms acquired a total of 10,000 apartments in Germany.