Hamburg-based property group TAG Immobilien has acquired 787 residential units for a total of EUR 43 mln. The transaction increases the firm's residential portfolio by 51,300 m[sup]2[/sup] or almost 20%. TAG said the deal is being financed by assuming existing bank debt as well as the non-cash issue of 2.4 million new shares.
Hamburg-based property group TAG Immobilien has acquired 787 residential units for a total of EUR 43 mln. The transaction increases the firm's residential portfolio by 51,300 m2 or almost 20%. TAG said the deal is being financed by assuming existing bank debt as well as the non-cash issue of 2.4 million new shares.
The buildings are for the most part located in parts of Berlin such as Charlottenburg, Prenzlauer Berg and Kreuzberg. Most of the portfolio comprises of housing stock of good quality and offering potential for rental growth. Just about all of the properties are let. The average price paid is around EUR 800 per m2.
'After an important phase of consolidation, TAG is now laying the foundation for further growth and a successful start to 2010 with this newly acquired package of real estate. We are keen on innovatively buying portfolios which are a good fit for our structure and strategy of holding good assets in first-class locations in German metropolitan regions', said Rolf Elgeti, CEO of TAG Immobilien.
