BUWOG, a 100% subsidiary of IMMOFINANZ Group has completed another acquisition in Germany. The company acquired a portfolio with a total lettable area of 88,483 m² in Kassel. The 1,190 apartments are located at three sites in the southwestern part of the city. The purchase price amounted to approximately €45.8 million, the gross yield was of about 9.16%.
The portfolio is characterized by a very low vacancy rate of only 2.49% and a stable tenant base with little fluctuation. The average rent of €4.05/m² is below the city’s market average and thus also has a corresponding increase potential.
"Our acquisition strategy differs from that of numerous competitors; we do not focus on the largest, but on the best markets. The decisive criteria for us are the increasing potential of the rent and the opportunity to grow in a location", said BUWOG CEO Alexander Hoff.
With the acquisition in Kassel, BUWOG’s housing stock has risen to 6,300 units, 1,500 apartments of which are part of the development projects of their subsidiary BUWOG Meermann.