German listed company TLG Immobilien has acquired a portfolio of seven offices and one hotel for almost €85 mln, reflecting a yield of 6.7%.
German listed company TLG Immobilien has acquired a portfolio of seven offices and one hotel for almost €85 mln, reflecting a yield of 6.7%.
The vendors were closed-end funds managed by Frankfurt-based DG Anlage.
The transaction comprises office properties in inner-city locations in Berlin, Dresden, Magdeburg, Chemnitz, Stuttgart and Essen, and a hotel in Leipzig. The overall portfolio generates €5.6 mln in annual rent and has an average lease term of 5.8 years. The vacancy rate is 12.5%.
'This portfolio contains outstanding properties which have potential in our core regions,' said Niclas Karoff of TLG's management board.
TLG focuses on managing office and retail properties in Berlin and other regional economic and growth centres in eastern Germany, including Dresden, Leipzig and Rostock. The company also owns hotels in Berlin, Dresden, Rostock and now Leipzig.
TLG aims to build up a portfolio valued at €2 bn by 2017. So far this year it has agreed acquisitions totalling €229 mln.