German-listed residential landlord Adler Real Estate has disposed of more than one-third of its commercial portfolio for a total value of €180.6 mln through its Dutch subsidiary, Brack Capital Properties NV.
The deal comprises three commercial units in Rostock, Celle and Castrop-Rauxel. Much of the proceeds will be used to pay off bank debts amounting to around €107 mln, thereby reducing Adler's LTV by approximately 80 basis points.
Brack Capital Properties, which is approximately 70% owned by Adler, signed the sale and purchase agreement with the buyer, a private equity firm based in London. Kempen acted as sole financial advisor to the transaction.
Adler said the divestment was part of its strategy of concentrating exclusively on residential property in Germany. The company intends to dispose of its remaining non-residential assets in the short term.
Last December Adler transferred more than 2,318 non-core properties worth €118 mln into a joint venture with Benson Elliot, which was set up to dispose of the assets in an opportunistic manner. Benson Elliot holds a 75% majority stake in the JV, while Adler will maintain the asset, property and facilities management until the assets are sold to third parties as well as retaining upside potential from future sales.
Tomas de Vargas Machuca, co-CEO of Adler Real Estate, said: 'The sale of our non-core rental units last December, as well as the recent sale of the first part of BCP's commercial portfolio, shows that we are working hard to successfully improve our LTV and optimise the portfolio.'