Foncière des Régions pursues its reinforcement strategy in Germany initiated in 2011, with the completion of two transactions for a total amount of €367 mln in the residential and hotel sectors in Germany.
The first transaction concerns the acquisition of around 2,000 residential units essentially located in Hamburg. Foncière des Régions has now decided to build a strong position on this active market based on sound real estate fundamentals: high demographic growth and strong demand in housing. This transaction represents a total investment of €239 mln, a gross yield of 5.5% and an average price of 1,860 €.per m². This acquisition enables to pursue the strategy of geographical diversification of the portfolio towards cities with an important growth potential, as well as the policy to improve the quality of the portfolio in Germany.
The second transaction concerns the acquisition of 22 B&B hotels in main German cities. Convinced that the budget hotel segment has real growth potential in Germany, this acquisition thus strengthens our partnership with the B&B Group and complements our existing portfolio of 187 hotels in Europe of which seven are currently under construction.
With these transactions, Foncière des Régions owns a € 3.5 bln portfolio in Germany (€2 bln group share, representing 20% exposure). In total, these acquisitions are included in the €1 bln investment pipeline group share in offices, hotels and residential, announced by Foncière des Régions for 2015.
Source: Foncière des Régions