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Listed Austrian real estate group Conwert Immobilien Invest SE has acquired three property companies that own a total of 1,016 apartments in Berlin from Germany's Colonia Real Estate for almost EUR 67 mln.

Conwert said the acquired portfolio comprises top quality properties in good and extremely good locations in Germany's capital city, which were predominantly built in the years 1900-1920. The total usable space of the properties is about 76,600 m2, of which 90% comprises apartments. An average acquisition price of approximately EUR 875/m² was achieved in the transaction, featuring entry yields of over 7% and vacancies of below 6%, the firm added.

'Berlin is one of the focal points of our investment activity and a place we are further expanding our commitment. The acquisition of about 1,000 apartments represents an attractive expansion of our portfolio. We see considerable potential for increasing earnings and enhancing the value of our properties within the context of our development strategy for old buildings,' said Conwert chairman Johann Kowar.

Kowar said he considered the latest acquisition to be a clear-cut indication of an upswing in the investment market. 'The development of residential property markets is stable, and the willingness of banks to finance projects implemented by solidly profitable companies has risen significantly recently. Besides maintaining our very successful sales business, where we continue to achieve high selling margins, we will once again increasingly take advantage of acquisition opportunities in Austria and Germany'.

Kronberg International S.A. took part in the transaction, purchasing a minority share of 5.1% of the portfolio. The transaction is expected to close in September 2009.