ADO Properties has signed several transactions for a total of 1,594 units in Berlin of which 1,467 are residential units and 127 are commercial units. The purchase price including transaction costs for 100% of the acquired assets amounts to €262.5m (including the assumption of certain liabilities). The agreements for the majority of the assets are subject to certain closing conditions. Closing of the transactions is expected to occur during Q4 2017. The assets are distributed across Berlin with around 25% in Central Locations.
The acquired portfolios have residential in-place rents between €4.2 m²/month to €7.9 m²/month and a vacancy rate of 3.2%. The Company expects new letting rents between € 6.5 m²/month and €11.0 m²/month, reflecting a reversionary potential of up to 86% with an average of 42%. The total annual net cold rent from the portfolios at purchase amounts to €9.2m.
Together with the acquired assets ADO expects to take over €99.2m of loans with an average maturity of 8.4 years and an average interest rate of 1.9%. The remainder of the purchase price will be funded by existing liquidity.
