TSC Real Estate has acquired a portfolio of 27 residential properties in the German state of North Rhein-Westphalia.
According to the Berlin-based investment and asset management company, the purchase price is in the mid double digit million euro range.
The deal was conducted for a residential portfolio belonging to a Luxembourg-based fund and the seller is a local family office.
The properties in Dortmund, Bochum, Duisburg, Gelsenkirchen, Herne and Remscheid have a total residential area of around 14,000 m2.
Maximilian Woiczikowsky, team leader investment management/senior investment manager at TSC Real Estate, said: ‘The properties occupy good micro locations and are mostly in good technical condition, which is reflected amongst other things in the vacancy rate of below 1%. The average contractual rents are mostly below current market level. At around a quarter of the properties, we have already started to examine projects to enhance value such as loft conversions and refurbishments to improve energy efficiency, some of which have commenced already. It may also be possible to sell the units as condominium apartments at a number of the properties.’
Berthold Becker, managing director at TSC Real Estate added: ‘After recent acquisitions in northern and eastern Germany, this purchase has enabled us to drive the geographic diversification of our existing portfolio. We will leverage the value enhancement potential offered by these new properties over the short term with our integrated and pro-active asset management approach and also carry out a number of ESG-specific projects.’
TSC Real Estate is the exclusive investment manager for the fund and will be responsible for the long-term asset and property management activities.
The buyer was advised by KL Gates, Lehmann Consult and Savills, while the transaction was brokered by FD Immobilien Management.
