Residential investor LEG has acquired 2,000 apartments in Germany from housing manager Vivawest.
Financial details were not disclosed, but it is known the portfolio generated €7.1 mln of rental income last year. The properties are located in the greater Aachen area and Lower Rhine and Ruhr regions.
The deal is set for approval by regulators in Germany with transfer of ownership due on 1 January, next year.
Lars von Lackum, CEO of LEG, said the purchase was part of the company’s growth plan. He said: 'Our aim is clear; we want to continue to grow.
'Attractive acquisitions cannot be taken for granted given the current modest supply of residential portfolios – especially from a proven, reliable business partner and reliable housing company like Vivawest.
’This makes us all the more delighted to be giving our market presence a further targeted boost with this transaction. As the acquired portfolio is located in our focal region of North Rhine-Westphalia, we can offer our new customers professional letting services from the get-go and continue the neighbourhood development.’
Claudia Goldenbeld, who chairs Vivawest's Management Board, said: ’The sale forms part of our long-term portfolio strategy which, in addition to selected divestments, involves significantly increased investment in energy modernisation and the new housing that is urgently required.
’We will construct more than 5,700 new homes by 2023, 20% of which will be state-subsidised. It was important for us to leave the properties in the good hands of a company with roots in the region in order to ensure uninterrupted service for tenants. As such, we are delighted that LEG, with its decades of housing industry experience, will continue the expert management of these locations.’
Listed housing firm LEG holds around 131,000 rental properties with more than 350,000 residents. Vivawest manages approximately 120,000 apartments in around 100 municipalities in the Rhine and Ruhr regions, with 300,000 residential occupants.