GSW Immobilien AG continues to expand and has successfully completed another transaction. The MDAX-listed real estate company has bought a portfolio with around 2,600 apartments from Zentral Boden Immobilien (ZBI), a German initiator for closed-end funds, at a total purchase price of around 147 million, or 970 per m².
Until now the properties had been part of the fund ZBI Professional 5. The average in-place rent is 5.39 per m² per month. Conclusion of the contracts - in line with standard market conditions - is expected by the end of the year.
Around 82% of the properties are situated in the districts of Neukölln (35%), Mitte (21%), Tempelhof-Schöneberg (12%), Reinickendorf (11%) and Steglitz-Zehlendorf (3%). The other units are in the cities of Duisburg, Essen, Erfurt, and Magdeburg. "We plan to resell the approximately 470 residential units outside of Berlin in the medium term," explained Jörg Schwagenscheidt, Member of the Board of Management of GSW Immobilien AG, whose responsibilities include acquisitions.
The following key figures apply to the Berlin properties with around 2,130 residential units: In-place rent stands at 5.52 per m² per month with further upward potential, and the vacancy rate is 1.6%. The average apartment size in Berlin is around 58 m².
With this acquisition and those made at the end of October, GSW has expanded its portfolio by a total of 7,000 apartments, more than 6,500 of which are in Berlin. The majority of these are situated in the immediate vicinity of GSW's existing housing stock and complement it perfectly.
"We have now invested the around €190 million from the capital increase," said Thomas Zinnöcker, CEO of GSW Immobilien AG.
"The successful acquisitions also vindicate our growth strategy," he added. "GSW will finance the approximately 2,600 apartments in this latest transaction through part of the net proceeds from the issue of convertible bonds, as the property portfolio is being acquired from the seller unencumbered," said CFO Andreas Segal.
However, the acquisitions will only impact earnings in the long term from 2013 as the transfer of risks and rewards or ownership is to be completed at the turn of the year. "Starting from next year, the new portfolios will have a positive impact on our operating margins," said Schwagenscheidt. "We therefore calculate an FFO contribution of 14.5 to 15.5 million from the acquisitions from 2013 considering the use of the proceeds from the capital increase and convertible bonds."
Source: GSW Immobilien AG