Ado Properties, a German subsidiary of Tel Aviv-listed Ado, has nearly doubled its portfolio with the acquisition of 5,750 residential units in Berlin ahead of a rumoured initial public offering.
Ado Properties, a German subsidiary of Tel Aviv-listed Ado, has nearly doubled its portfolio with the acquisition of 5,750 residential units in Berlin ahead of a rumoured initial public offering.
Ado Properties bought the assets from listed residential landlord Deutsche Wohnen for €375 mln.
Rumours in the market suggest Ado is looking to raise €350 mln in an Initial Public Offering and listing of its own. The acquired portfolio comprises assets located in the Spandau and Reinickendorf districts of the German capital. Ado now owns 14,000 units.
'We see great value potential and high demand for apartments in the outskirts of Berlin since rent levels are continuously rising in inner-city locations over the past years along with a decline in available residential units,' said Rabin Savion, CEO of Ado Properties. 'We are convinced that demand will grow in the outskirts to benefit from more affordable rents.'
The acquired portfolio has an in-place rent of €5.10 m2/month and a vacancy rate of 3.5%. According to the CBRE/Berlin Hyp Housing Market Report Berlin the average rent for new lettings in Spandau is at €6.75 m2/month and in Reinickendorf €7.08 m2/month.
'We performed a detailed technical due diligence for the buildings and developed a five-year investment plan to ensure an appropriate and contemporary condition. We are a long term investor and our targets are to achieve a sustainable housing amenity for tenants and a reduced requirement for future maintenance measures for the landlord,' added Savion.
