Vivacon, the German real estate company, has sold a large portfolio of residential properties to an international institutional investor for EUR 180 mln. The portfolio consists of 5,133 residential units with a total area of 305,700 m[sup]2[/sup] predominantly located in northern Germany and North Rhine-Westphalia on Germany's western border.
Vivacon, the German real estate company, has sold a large portfolio of residential properties to an international institutional investor for EUR 180 mln. The portfolio consists of 5,133 residential units with a total area of 305,700 m2 predominantly located in northern Germany and North Rhine-Westphalia on Germany's western border.
The transaction, which is subject to regulatory approval and the consent of the investor's supervisory board, involves the sale of shares in special purpose vehicles. The properties' ground lease contracts have an initial maturity of 198 years and Vivacon said it will generate initial annual ground rents of some EUR 1.04 mln from the deal.
Two weeks ago, Vivacon acquired a 1,109-unit residential real estate portfolio through subsidiaries in various transactions in North Rhine-Westphalia, northern Germany and northern Hesse. The portfolio conmprises a total rentable area of approximately 70,600 m2 and the occupancy rate is approximately 93%. The deal brought the total residential units owned by Vivacon at that time to some 6,000 units.
In June this year the company postponed the planned initial public offering (IPO) of Vivacon German Properties due to what it described as 'the unsatisfactory market environment for IPOs currently'. A new date for the IPO has yet to be announced.
