Pirelli RE and Deutsche Bank's property unit RREEF have agreed to acquire Baubecon’s residential portfolio in Germany for about EUR 1.7 bn. The property portfolio is being sold by US private equity group Cerberus, which bought it for EUR 1 bn in 2005. RREEF is acquiring a 60% stake while Pirelli will own the remaining 40% interest in Baubecon. Pirelli RE will purchase 100% of the Baubecon unit that manages real estate, the company said.
Pirelli RE and Deutsche Bank's property unit RREEF have agreed to acquire Baubecon’s residential portfolio in Germany for about EUR 1.7 bn. The property portfolio is being sold by US private equity group Cerberus, which bought it for EUR 1 bn in 2005. RREEF is acquiring a 60% stake while Pirelli will own the remaining 40% interest in Baubecon. Pirelli RE will purchase 100% of the Baubecon unit that manages real estate, the company said.
At the end of June, Cerberus said it was putting its residential portfolio in Germany on the market, as the company hadn’t seen the investment returns it had hoped for. The portfolio comprises some 27,000 flats formerly owned by trade unions. The assets are mostly located in German cities including Berlin, Hanover and Magdeburg. As reported earlier by PropertyEU (see PropertyEU June 26), Pirelli RE was in the running for Cerberus' residential assets in Germany, where the Italian company was planning a major acquisition following that of Deutsche Grundvermogen (DGAG) last year.