ADLER Real Estate AG, Frankfurt / M., has agreed to acquire a majority stake in a large residential property portfolio comprising of approx. 6,750 units. The Company has yet again secured another major portfolio acquisition in line with its ongoing growth strategy. The acquisition is expected to close by year end 2014.
The acquisition involves of the takeover of the majority stake in the housing association Jade mbH located in Wilhelmshaven on the North Sea coast of Lower Saxony. Jade mbH is not only the holding company owning the assets but is also the property and facility manager. The Value of the portfolio stands at considerably above the €200 million mark.
Specifically, the Jade mbH comprises of 6,641 residential and 31 commercial units with 74 apartments for student accommodation. The properties have been very well maintained and are in a very good condition, with virtually no deferred maintenance and capex backlog and are located in the better areas of Germany’s largest naval site. About two-thirds of the properties were built in the 30s and 40s of the last century. Its current net rental income stands at €20.5 million.
The occupancy rate is reaching 93% and has benefited from an upward trend in recent times resulting from the positive economic activity driven by the construction of the new deep sea water port. Upon completion of the transaction the portfolio will generate positive cash flows and thus continue to contribute to ADLER’S ongoing Group success.