conwert Immobilien Invest AG has acquired a further property portfolio in Leipzig with 19 high-quality properties, thus continuing its strategy of expanding into East German cities with a strong infrastructure. The transaction volume of the most recent acquisition is €11.30 million, the total useable space approximately 15,000 m².
"As a result of our optimum market access, we have already acquired properties with a total value of more than €260 million this year, thus further extending our strong position as specialist for high-quality residential property on what is currently one of the most attractive markets in Europe. Germany is thus increasingly developing into the second home market for conwert after Austria," commented Johann Kowar, Chairman of the Management Board on the most recent acquisition.
Currently conwert has more than 750 properties with a total value exceeding €720 million, after €451 million to the end of the year in Germany. In addition to Berlin and Hamburg, the focus is on the flourishing economic area around the cities of Leipzig and Dresden.
High-quality houses from the beginning of the last century
The property portfolio which has just been acquired consists of 19 houses from the turn of the last century in good Leipzig residential districts. The properties have already been completely renovated and are largely used for residential purposes.
Alexander Zartl, conwert Management Board member with responsibility for Germany sees further potential in the new acquisitions: "For a favourable price of €770/m² we have acquired top properties in top-class locations of a city which is currently fully benefiting from the economic upturn in the largest economy of Europe. Even on the basis of moderately calculated rents of roughly €4.5/m², we can achieve yields of around 7% and thus considerably more than with comparable properties in other East and West European cities. And should there be a further upturn in demand, we have further upside potential."
Investment program is being continued
conwert will continue to implement its investment and internationalisation program in Germany. There is thus a pipeline of transactions under examination with a total value exceeding €350 million in Germany. "The window of opportunity remains open in Germany and is attractive for this reason we will continue the purchase of further high-quality properties," concludes Johann Kowar.