German housing provider LEG Immobilien has purchased two portfolios of residential accommodation in Germany comprising 1,400 units for €98 mln.
The vendor was not disclosed. The initial net rental yield is 5.8%.
The properties are located in markets including Düsseldorf, Dortmund, Essen and Wuppertal with a vacancy rate currently above 25%.
'We are pleased to be able to continue our successful acquisition strategy. With these acquisitions, we are benefiting considerably from our leading market position in LEG’s core markets and can apply our leading management expertise,' commented Thomas Hegel, CEO of LEG Immobilien.
The deal includes a portfolio of 1,145 residential units with a short-term vacancy rate of more than 30%, which LEG said presented an opportunity to create significant added value.
The remaining units were acquired via a takeover of Düsseldorfer Ton- und Ziegelwerke, a company owning a high quality portfolio of 29 homes located mostly in Düsseldorf.
Since the start of the year, LEG has acquired a total of around 3,500 residential units in its core markets. The company said it remained confident that it could continue this growth trajectory over the remainder of the year.
LEG currently numbers around 130,000 rental properties and around 350,000 residents across Germany. It generated rental and lease income of around €763 mln in the 2016 financial year.
