LEG Immobilien buys more resi assets

Listed German residential company LEG Immobilien has purchased a housing portfolio from an unnamed Scandinavian investor for around €23 mln.

The acquisition is LEG’s third residential deal in Germany in the space of six months.

The latest purchase involves 538 residential units located in Minden, Osnabrück, Düsseldorf and Essen, among other cities.

According to LEG, the portfolio will generate an FFO return of over 8% in the first year and around 11% thereafter. The net rental income is €2 mln, corresponding to an average rent of €4.92/m2 without utilities.

LEG said it believes it can reduce the current 8.7% vacancy rate of the portfolio. The properties are in close proximity to other LEG residential assets.

Separately, LEG said it had been admitted to the MDAX segment of the Frankfurt stock exchange on 5 June, just four months after going public.

The Düsseldorf-based property group raised more than €1.3 bn in February in the second-largest German IPO in five years.

LEG owns 94,000 homes in North-Rhine Westphalia and the property group plans to grow this figure over the next two years.