Listed landlord TAG Immobilien has purchased around 2,700 of apartments in Germany in two seperate deals worth a total of €84.8 mln.
The vendors in the transactions was not disclosed. The deals include a residential portfolio with 1,441 units in the city of Brandenburg acquired in February of this year, for a price of €41.9 mln. This portfolio currently generates annual rental income of around €3.42 mln, at a vacancy of around 19.3%.
TAG also said it had bought 1,252 units in Halle an der Saale in March for €42.9 mln. The annual net rental income of this portfolio is currently around €3.47 mln and vacancy is approximately 7.2%.
'In parallel with our strong operational growth, in the first quarter of 2017 we also laid the foundations for continued targeted external growth and optimised our capital structure by successfully placing the last remaining treasury shares from the 2014 share buyback,' commented Martin Thiel, CFO of TAG Immobilien. 'As a result, we were able to purchase another 2,700 residential units at the end of February and at the end of March 2017.'
Both transactions are expected to close at the end of the second quarter of 2017.
The deals were announced alongside TAG's first quarter results for 2017, where the German landlord recorded increased funds from operations (FFO) of €28.5 mln or €0.20 per share, rising from the previous quarter's €27 mln (€0.19 per share).
