BUWOG acquires 582 flats in Kiel (DE)

BUWOG, a wholly owned subsidiary of IMMOFINANZ Group, has acquired a portfolio totaling 582 flats in the Schleswig-Holstein capital of Kiel. The package consists of nine properties and has letable space totaling 28,210 m². The seller is the Dutch residential firm RVG Real Estate, the purchase price is €24.5 million, the gross return amounts to 7.7%, and the actual rent is €5.74/m².

The portfolio is concentrated on Pries/Friedrichsort. The vacancy rate is 4.29% and includes flats that will be available for letting after renovation. Kiel is a particularly attractive investment location: 'The population forecast of the city is positive and, according to Prognos-Zukunftsatlas, it is one of Germany's most economically dynamic cities. Thus the demand for the flats we have acquired in the average price segment appears to be guaranteed for the long term and we can expect a low vacancy rate as well as steadily rising average rents’ said Daniel Riedl, CEO of BUWOG and management board member of BUWOG’s parent company IMMOFINANZ Group.

With the purchase of the portfolio in Kiel following the acquisition of 1,916 flats in Berlin, 1,190 flats in Kassel, and 900 flats in Lüneburg and Syke, BUWOG has already concluded its fourth major transaction in Germany this calendar year. Currently, the residential portfolio in Germany totals around 6,900 units, in addition to development projects with another 1,500 flats in Berlin.


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