LEG Immobilien AG (LEG) has purchased a portfolio of 537 residential units in North Rhine-Westphalia. The apartments are located in the attractive growth market of Cologne and other stable locations of NRW.
At an annual rental income of €2.2 million, the purchase price including incidental acquisition costs amounts to €26.1 million, while the current vacancy rate of the portfolio is only 0.4%, underlining the high tenant demand and quality of the property portfolio. The initial FFO yield is over 8%, which meets LEG’s return criteria.
Moreover, a provisional agreement is to be reached with another seller on the acquisition of approximately 2,000 units. The completion of the transaction is expected in the coming months.
Based on the company’s selective acquisition strategy, the year 2013 is already showing a positive result with the purchase of approximately 6,700 residential units. The acquisition target for 2013 was therefore fulfilled and LEG is on a very good way to achieve the goal of buying a total of 10,000 units by the end of 2014.
Source: LEG Immobilien