Germany's TAG Immobilien has announced the purchase of a residential real estate portfolio consisting of 3,100 apartments and 71 commercial units in northern Germany and Saxony for roughly EUR 150 mln.
Germany's TAG Immobilien has announced the purchase of a residential real estate portfolio consisting of 3,100 apartments and 71 commercial units in northern Germany and Saxony for roughly EUR 150 mln.
TAG said in a statement the acquisition will be partly financed through the issue of 5.5 million new shares at a price of EUR 8. On completion of the deal, the vendors of the portfolio will own 7.8 % of the voting rights in TAG.
The portfolio offers a total rental space of 208,000 m2 and generates net rental income of EUR 12.7 mln per annum. The vacancy rate stands at 6.3%.
The deal expands TAG's residential property portfolio by around 10% to some 30,000 units in Germany. The company said it plans to take over the management of the assets from 2013.
According to research issued today by international real estate advisor Savills, nearly 35,000 residential units changed hands in Germany in the first half of 2011, up 53% year-on-year in terms of deal numbers. 'The figures reflect the growing interest of both national and international investors in residential property in Germany,' commented Karsten Nemecek, Savills' managing director of corporate finance and valuation.
He added: 'This is why we also expect to see further large-scale transactions in the second half of the year.'
