LEG Immobilien has acquired a portfolio of 829 residential units from a family seller for €34m.
The properties, located in Solingen, near Düsseldorf, are 95% let and generate an annual rent of €2.6m with a FFO return of 10%. The majority of the flats are equipped for elderly tenants.
The average rent is €4.92 per m2.
Following the transaction, LEG’s portfolio is increased to 94,000 residential units in Germany.
The acquisition is part of LEG’s Gewohnt Vital strategy which is anticipating strong demand for flats for the elderly. According to LEG, the demand for residential living space for the elderly, reduced vacancy and moderate rental increase are the basis for long-term value growth. The acquisition is the third portfolio investment by LEG within two months.
Since its listing on the German stock exchange, the company has acquired more than 3,500 flats. LEG is planning to acquire a total of 10,000 flats by the end of 2014.
