Immofinanz unit in talks on German resi deal

Buwog, a wholly owned subsidiary of listed Austrian investor Immofinanz, is in talks with Solaia Real Estate on the acquisition of a German housing portfolio.

Immofinanz said the housing portfolio under discussion covers nearly 18,000 housing units in northern Germany.

The outcome of the discussions is expected around the year-end.

Solaia RE Group is a joint venture of Prelios and an investment fund managed by Deutsche Asset & Wealth Management Real Estate.

Buwog currently owns about 7,200 apartments in Germany and some 27,200 in Austria. The company aims to increase the German portfolio to 15,000-20,000 units ahead of the planned listing of Buwog shares in 2014. Buwog has already announced five acquisitions in 2013, including deals in Kiel, Kassel and Berlin.

Parent company Immofinanz plans to reduce its stake in Buwog to less than 50% through a spin-off or an initial public offering (IPO). This transaction is expected to take place in 2014.