Immofinanz's wholly-owned residential unit Buwog has acquired a portfolio of 582 flats in the Schleswig-Holstein capital of Kiel, Germany, for 鈧�24.5 mln, reflecting a gross return of 7.7%.
Immofinanz's wholly-owned residential unit Buwog has acquired a portfolio of 582 flats in the Schleswig-Holstein capital of Kiel, Germany, for 鈧�24.5 mln, reflecting a gross return of 7.7%.
The seller is Dutch residential firm RVG Real Estate.
The package consists of nine properties and provides a total lettable space of 28,210 m2. The portfolio is concentrated on the Pries/Friedrichsort district with an actual rent of 鈧�5.74 per m2. The vacancy rate is 4.29%.
Kiel is a particularly attractive investment location, according to Daniel Riedl, CEO of Buwog and management board member of parent company Immofinanz. 'The population forecast is positive and Kiel is one of Germany's most economically dynamic cities. Thus the demand for the flats we have acquired in the average price segment appears to be guaranteed for the long term and we can expect a low vacancy rate as well as steadily rising average rents.'
The purchase follows the acquisition of 1,916 flats in Berlin, 1,190 flats in Kassel, and 900 flats in L眉neburg and Syke. Currently, Buwog owns 6,900 units in Germany, in addition to development projects with another 1,500 flats in Berlin.
Earlier this month, Vienna-listed Immofinanz announced plans to sell off 50% of its fully-owned residential arm Buwog as a first step towards its strategy to list the unit on the Frankfurt stock exchange next year.
Immofinanz said the sale of the majority holding in Buwog will take place through a spin-off or initial public offering.
'Since its privatisation in 2004, Buwog has completed an impressive transformation from its original position as a housing company for civil servants into a professional full-service residential property company,' Riedl said.
