TAG Immobilien AG has sold a property in Hamburg containing roughly 5,400 m² of residential space in 130 units.
TAG and the buyer have agreed to keep the purchase price confidential; however, it is 30% above the property's current IFRS book value and will result in gains of around 2.8 million.
The sale of the property was driven by the purchase price offered, which was well above the last appraisal.
Rolf Elgeti, Managing Director of TAG Immobilien AG, says: "While TAG is a long-term investor, we occasionally take advantage of opportunities to realize profits by selling properties at attractive prices. We will invest the capital released in this way in buying properties with a much higher initial yield, which will further improve the operating profitability of the TAG group.
"We will, of course, continue to perform individual sales wherever this seems in line with value-optimizing portfolio management."
Source: TAG Immobilien AG