Foncière des Régions is pursuing its acquisitions in Germany by investing, through its subsidiary FDL, in which it has a 59.7% stake, €351 million in several residential real estate portfolios in Berlin and Dresden. The German residential sector represents an attractive diversification for Foncière des Régions, which is focused on Offices/Key Accounts.
In total, four residential portfolios were acquired during September in Germany, valued at €351 million, bringing the amount of transactions carried out since the beginning of the year to €394 million, with nearly €369 million in disposals and disposal agreements.
The real estate acquired in Germany represents over 4,000 housing units, 78% (in value) of which are located in Berlin and 21% in Dresden. The properties were acquired on the basis of an average gross yield of 6.5% and have strong potential for value creation, with an average reversion rate of over 20%.
With these transactions, the Company has entered a new phase of its geographical diversification strategy in Germany, with residential assets of €2.4 billion in the country, of which 21% are located in Berlin, versus 10% at the end of 2012, and 3% in Dresden, up from 0% at the end of 2012.
Source: Foncière des Régions