Deutsche Bank's RREEF and Italian listed firm Prelios are planning to sell their German DGAG portfolio valued at about €1 bn to take advantage of rising demand for residential assets.
Deutsche Bank's RREEF and Italian listed firm Prelios are planning to sell their German DGAG portfolio valued at about €1 bn to take advantage of rising demand for residential assets.
According to news agency Bloomberg, the landlords are looking to complete the sale this year.
DGAG owns about 10,000 apartments in northern German cities including Hamburg and Luebeck.
Prelios, formerly known as Pirelli RE, has been gradually divesting its property holdings with the goal of focusing on property servicing.
The Italian firm bought DGAG in 2007 from NSH Nordbank and a private investor. It financed the purchase with a loan of over €1 bn provided by Hypo RE. Prelios then sold some of DGAG’s residential properties to its partnership with RREEF.
In December of last year, the Milan-listed company together with RREEF formed part of a consortium that sold Berlin's KaDeWe department store for €1.1 bn.
