Immeo invests €240m in German residential sector

Immeo Wohnen, the German residential property arm of French REIT Foncière des Régions, is acquiring a portfolio of 3,400 homes in Berlin and Dresden for €240 mln.

The 201,000 m2 portfolio includes 100 commercial units.

Frankfurt-based real estate service provider Dr. Lübke & Kelber carried out an eight-year asset management programme on the portfolio on behalf of a Danish investor before brokering the sale to Immeo.

'We don't see our job as the passive administration of real estate stock while the years roll by. For us, asset management means to preserve and increase the value of the properties,' said Ulrich Jacke, managing partner at Dr. Lübke & Kelber. 'It is also important to keep an eye out for the right time to sell,' added George Salden, head of residential transactions at the firm.

Immeo Wohnen is a mid-to-large residential property investor in Germany and a subsidiary of French REIT Foncière des Régions (FdR). 'We already have an inventory of around 40,000 apartments in the Rhine-Ruhr region, Berlin and Dresden,' said Immeo board member Marcus Bartenstein. 'The new portfolio is in excellent repair, and perfectly complements our corporate strategy.'

The seller was advised by law firm CMS Hasche Sigle, the buyer by Beiten Burkhardt.

SPLIT UP
Foncière Développement Logements, the residential arm of French REIT Foncière des Régions, announced in April that it planned to separate Immeo Wohnen from its French portfolio.

The move is in response to growing divergence between the two markets as well as greater investor specialisation. The split will be achieved through the sale of shares in the German subsidiary, Immeo Wohnen, to the main shareholders Foncière des Régions (59.7%), Crédit Agricole Assurances (15.1%), Cardif Assurance Vie (13.7%) and Generali (8.9%).

Immeo Wohnen owns 47,000 homes. Foncière Développement Logements paid €2.1 bn to take control of the company in October 2006.