Merrill Lynch and German property company Colonia Real Estate have acquired a residential portfolio for around EUR 103mln from Bonn-based Wohnbau. The portfolio consists of 51 properties with around 2,000 residential apartments in Berlin and Bavaria. The combined area of the acquired properties comprises about 140,000 m[sup]2[/sup]. Merill Lynch holds 92.5% of the transaction value, while co-investor Colonia Real Estate has a 7.5% stake. Colonia's subsidiary Resolution will take over the asset management of the entire portfolio.
Merrill Lynch and German property company Colonia Real Estate have acquired a residential portfolio for around EUR 103mln from Bonn-based Wohnbau. The portfolio consists of 51 properties with around 2,000 residential apartments in Berlin and Bavaria. The combined area of the acquired properties comprises about 140,000 m2. Merill Lynch holds 92.5% of the transaction value, while co-investor Colonia Real Estate has a 7.5% stake. Colonia's subsidiary Resolution will take over the asset management of the entire portfolio.
'Gemany remains one of our preferred real estate markets worldwide, especially in the residential segment,' said Stefan Aumann, head of Merrill Lynch's Global Principal Investments. 'Germany's economy is proving resilient to the global credit crisis, the financial policy environment is currently benign, and we believe that residential real estate in good locations - like the ones we have just bought - will gain in value.'
'With the expansion of our activities into strategic asset management, we are taking the logical next step and meeting the requirements of our customers,' said Christoph Wittkop, board member of Colonia Real Estate.
The seller was advised on the transaction by Ernst & Young Real Estate.
