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Swiss real estate investor Corestate has announced the sale of a German mixed-used portfolio for €250 mln to a number of unnamed German institutional buyers.

In a statement, Corestate said it had originally acquired the portfolio in a distressed state and has repositioned it over time. During this process, the Zug-based investor invested €10 mln of capital in asset management activities to improve the overall state and quality of the assets.

The portfolio comprises 3,700 commercial and residential units put together through the acquisition of smaller distressed packages that have been bought over several years. The assets are located in different locations, such as Mainz, Mannheim, Frankfurt, Wiesbaden, Münster, Solingen a well as Berlin, Dresden and Leipzig.

'This has been a very successful transaction through which we fulfilled our business plan as forecast; decreasing the vacancy and delinquency rates in this portfolio and thereby increasing the cash flow considerably,' commented Thomas Landschreiber, Corestate's Chief Operating Officer. 'We have turned distressed assets into a stable core portfolio, achieving attractive returns for our investors.'

Landschreiber added that the company intends to build up its platform even more in the near future. 'We see an increased number of transactions coming to the market,' he noted.

Corestate is currently in the process of repositioning more recent acquisitions which are undergoing similar asset management improvements. With offices in Frankfurt, Essen, London and Luxembourg, the company has invested €2 bn in the real estate market both through direct and indirect transactions.