Dusseldorf-based property group LEG Immobilien has acquired 2,200 apartments in the North Rhine-Westphalia region of Germany.
Dusseldorf-based property group LEG Immobilien has acquired 2,200 apartments in the North Rhine-Westphalia region of Germany.
The vendor is a consortium of investors led by BGP Investment. The current asset managers, Feondor Asset Management, worked as transaction managers for the vendor consortium. The purchase price was not disclosed.
The portfolio of apartments currently generates an annual net rent without utilities of approximately €6.1 mln. This corresponds to an average rent of €4.74 per m2.
LEG stated that a ‘significant’ increase in rental value can be achieved through moderate rent adjustments and a reduction in the current vacancy rate of 8%.
The apartments are located in several towns and cities, including Dortmund, Essen, Bochum and Witten.
The purchase is consistent with the company’s expansion plans, according to LEG CEO Thomas Hegel. ‘After buying a portfolio at the end of 2012, LEG consistently delivers its growth promises to investors and capital markets. The plan is to purchase a total of at least 10,000 homes by the end of 2014,’ he said.
