BGP Investment s.à r.l. (BGP) and CORESTATE Capital AG, Zug (CORESTATE) have entered into a comprehensive agreement in respect of approx. 4,700 apartments located predominantly in Western Germany. The portfolio comprises over 300,000 m² of lettable space and currently carries approx. 150 million of debt financing.
Under the terms of the proposed transaction, a holding company of CORESTATE Group will be assuming ownership of the portfolio from BGP and implementing a comprehensive investment and capital expenditure programme. The transaction remains subject to consents to be granted by inter alia the existing financing parties. This consent has to be obtained by the end of February 2010 for the transaction to complete successfully.
Commenting on the transaction, Mark Dunstan, Managing Director of BGP said: "This is the first transaction to be signed as part of our strategy to dispose of our non-core property interests in Germany. We are pleased to execute it on terms which allow us to focus our investment management efforts on the remaining assets."
Ralph Winter, Founder of CORESTATE stated: "We plan to add these 4,700 apartments to CORESTATE's extensive base of residential properties, for which we have already achieved significant improvements. We are now looking forward to bringing the former BGP estate forward with our expert asset management team."
Source: Business Network Berlin