BUWOG, a wholly owned subsidiary of IMMOFINANZ Group, has acquired another residential package in Germany. The portfolio is located in Berlin and in the surrounding areas of the capital and encompasses 1,185 residential units with total lettable space of 79,422 m². The purchase price totals €50 million, resulting in an average price per m² of about €630. The gross return comes to 8.62%. The package originates from an insolvency estate (insolvency administrator: Prof. Ralf Rattunde). The sale is subject to approval by the antitrust authorities.
With 671 flats, nearly 60% of the units are located in Berlin-Kaulsdorf, a neighborhood of the Marzahn-Hellersdorf district located in the east of the city. Another focal point is the city of Strausberg with 407 flats, located approximately 15 km east of the city; smaller stakes are accounted for by Grünheide Mark (64 flats), Sydower Fliess (24 flats) and Fredersdorf (19 flats). The vacancy rate is 4.2% and applies mainly to the locations outside of the capital. Including the newly acquired units BUWOG now has 5,447 flats in greater Berlin.
"The acquisition is in line with our overall strategy, which stipulates the continuous development of a strong portfolio in the northern German federal states", says Daniel Riedl, CEO of BUWOG and COO of parent company IMMOFINANZ Group. "Berlin is still one of Germany's most favorably priced large cities for rents and freehold flat prices. A process of catch-up has been underway for several years, however. The residential package just acquired will bring good long-term returns; the vacancy rate is low.”
BUWOG's residential portfolio currently includes approximately 8,430 units in Germany and approximately 27,100 units in Austria. Furthermore, development projects with 1,600 flats are being carried out by the subsidiary BUWOG Meermann in Berlin. In Vienna there are 3,000 flats under construction or in planning.