Patrizia disposes of 1,150 homes from its own portfolio

Patrizia Immobilien, a German listed property company and organiser of consortium transactions for institutional investors, has sold a 1,150-home portfolio from its own stock.

Gagfah, a listed residential landlord in Germany, acquired the 75,400 m2 portfolio but both sides agreed not to disclose the investment volume.

The contribution from the transaction has already been included in Patrizia's forecast for an operating result of at least €50 mln for the 2014 business year.

Patrizia’s stock of property intended for block sales amounted to 2,651 units at end-September 2014 and – together with the residential resale portfolio – was originally planned to be largely sold off by the end of 2015.

In addition to this sale of residential units located in and around Frankfurt/Main, Hamburg and Cologne/Düsseldorf, the sale of the entire stock in Leipzig (828 units) and Hanover (106) has also been finalised. Patrizia's own properties earmarked for single-unit sales and the real estate already in the process of single-unit sales (824 units at 30 September 2014) were not included in the sale.

Commenting on the sale, Patrizia CEO Wolfgang Egger said: 'This transaction marks a further step towards Patrizia achieving its goal of becoming a fully integrated real estate investment company. The funds freed up by the transaction will now be available for strategic development sooner than anticipated.'

At the same time, Patrizia said the process of debt reduction will continue, meaning that bank loans will fall below the forecast amount of €100 mln by the end of the year. In light of the sales already concluded, which will be reported in income once the transfer of ownership, usage and encumbrances has been completed in the fourth quarter of 2014, the company’s own portfolio will drop to around 1,000 units by the end of the year (31 December 2013: 4,064 units).