Aareal Asset Management GmbH, a 100% subsidiary of the Aareal Bank AG, has acquired a residential portfolio comprising approx. 1,400 units on behalf of GERES S.à r.l, Luxembourg for the Aareal German Residential Fund. The sellers are subsidiaries of Allianz Group, represented by Allianz Immobilien GmbH, Stuttgart.
The portfolio is predominantly located in Hamburg, Hannover, Rhineland and in the Rhine-Main area and also comprises 60 commercial units. The management of the portfolio will be taken over by Deutsche Bau- und Grundstücks-AG, (BauGrund), a 100% subsidiary of Aareal Bank, which is specialized in the management of major residential portfolios.
The Aareal German Residential Fund focuses on the acquisition and later disposal of residential property assets in economically strong regions in Germany. The fund has a seven year lifetime and will invest approx. 800 million. According to Charles Pridgeon, CEO of Aareal Asset Management, further investments with a value of several hundred million euros are in the pipeline for the current fiscal year and the first quarter of 2007. Currently, Aareal Asset Management is in a number of advanced purchase negotiations to achieve this target.
Source: Aareal Bank