Listed landlord TAG Immobilien has acquired a 860-unit portfolio in eastern Germany for €18.6 mln.
Listed landlord TAG Immobilien has acquired a 860-unit portfolio in eastern Germany for €18.6 mln.
The portfolio comprises 839 residential units and 23 commercial units at various locations in the eastern German states of Saxony, Saxony-Anhalt and Brandenburg. They are concentrated around the university city of Leipzig and the greater Leipzig area with 400 units, and the Dresden region with almost 200 units. Other units are concentrated in Magdeburg, Brandenburg and Prenzlau. The portfolio is scheduled to be gradually transferred starting the end of Q2 and during the course of Q3 2015.
The rentable area of the portfolio is around 49,900 m2, and the current rent is around €2.35 m per year. The acquisition has the potential to add value as the portfolio has a 14.8% vacancy rate and was bought out from a complex ownership structure.
TAG's total portfolio, including sales and purchases in 2015, now stands at around 75,000 units.
