Hypo Real Estate Bank finances Gehag GmbHs acquisition of a residential portfolio in Berlin (DE)

The Hypo Real Estate Bank AG, Munich, has financed the acquisition of a real estate portfolio with approximately 5,300 residential units and five retirement and nursing home properties by Fortimo GmbH, a subsidiary of Gehag GmbH. Financing amounted to 228 million; it was agreed not to disclose the total purchasing price. The transaction was closed in December 2005.

The attractive residential properties, predominantly listed buildings dating back to the 1930s, are partly situated in individual excellent locations in West Berlin and partly in some of the top areas of East Berlin. Located in Berlin, Brandenburg and Lower Saxony, the well-equipped retirement and nursing home complexes offer extensive patient in-treatment services and are for the most part fully occupied.

Reinhold Güntner, a deputy member of the Management Board of Directors of the Hypo Real Estate Bank AG stated: Berlin is an important market for real estate financing. We are able to support our customers through speedy decision-making and great flexibility and can offer them innovative financing models tailored to their individual requirements.

Michael Zahn, Managing Director of Gehag GmbH: This transaction is completely in line with our corporate strategy of expanding our business outside of the Berlin area and achieving nationwide growth. Besides the traditional residential sector, we also aim to strengthen our health care portfolio through the Katharinenhof brand.

Source: Hypo Real Estate

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