Foncière des Régions announces the signing of two agreements relating to the acquisition of two asset portfolios in Berlin, Dresden and Leipzig, via its German residential subsidiary Immeo AG. These transactions represent a total investment of €221 million, taxes and fees included.
The first portfolio (€184 million) comprises buildings in prime locations in Berlin, in the Charlottenburg, Mitte and Friedrichshain districts, and records average rental income of €9.1/m²/month. The second portfolio (€37 million) aims to strengthen Foncière des Régions’ presence in Dresden and Leipzig. These operations have the potential to create value by increasing rental income and forward sales margins.
In total, these acquisitions offer an immediate yield of 5.2%, an average reversion of 25% and an average price of around €1,710 per m².
Foncière des Régions is thus continuing its strategy by bolstering its position in these three flourishing and attractive cities where the company already has local teams.
Source: Foncière des Régions