Aroundtown, the largest listed German commercial real estate landlord, has inked deals for €900 mln of €1.5 bn German and Benelux properties in its pipeline.
According to the German REIT, the €900 mln of signed deals reflect an acquisition-multiple of 16 times. The assets have an upside potential which will bring the long term net operating yield to around 7% the firm said and are expected to be completed before year-end.
The update comes as media reports suggest Aroundtown is in exclusive talks to buy from The Blackstone Group a portfolio of Center Parcs holiday resorts for around €1 bn. Blackstone acquired the assets in Belgium, the Netherlands and Germany for €630 mln in 2006.
Acquistive Aroundtown has purchased €2.5 bn of properties this year to date with an acquisition-multiple of 21 times, 7% vacancy on average and a long-term net yield exceeding 7%.
Ir said its active sales pipeline amounted to €700 mln non-core and mature properties, as well as completed sales of €200 mln for this year.
Earlier in the week, the company successfully placed €1.4 bn fixed-rate senior notes across two tranches with maturity dates of 2025 and 2028. The notes have been admitted to trading on Euronext Dublin, and will be used to repay existing debt as well as to fund its growth strategy.
As of March 2019, the firm's portfolio comprised 52% offices, 30% hotels, 11% logstics and 6% retail, with the majority of properties in Germany's top seven cities.