Vienna’s CA Immobilien has sold the Hesse portfolio to Patrizia Group.
The portfolio has a value of around €0.8bn.
CA Immo acquired the portfolio in 2006 from the German state of Hesse, which has since let the properties on a long-term basis. The package comprises 36 properties in 19 locations in Hesse.
The transaction is expected to close before the end of 2013.
CA Immo recently sold the Tower 185 in Frankfurt which has, together with the current transaction, enabled the company to strengthen its balance sheet by reducing gearing substantially and to cut financing costs by repaying expensive loans.
The measures will raise recurring earnings in the long term while reducing risk, said CA Immo.
Chief executive officer at CA Immo, Bruno Ettenauer, said: “These past few weeks have been decisive for CA Immo. We have finalised the biggest single transaction of 2013 with the sale of Tower 185 in Frankfurt, and now the biggest portfolio deal of the year with the sale of the Hesse portfolio. Thanks to these large-scale deals, we have sold around 20% of our portfolio above book value.”
“We are well on the way to achieving a strongly positive annual result for 2013 – and to making CA Immo more profitable in the long run,” he added.
