German landlord LEG has acquired a portfolio of around 2,200 residential units and 30 commercial units in Bremen, Oldenburg, Delmenhorst and Cuxhaven from the Hanover-based Baum Group.
Financial details were not disclosed.
The portfolio comprises a total rental space of around 140,000 m2, some 92% of which is situated in Bremen and Oldenburg, across 36 developments. The apartments have an occupancy rate of around 98.5% and an average monthly rent of around €6 per m2. In the 2018 financial year, the portfolio generated rental income of €10.2 mln.
LEG said that the properties in the portfolio were constructed between 1920 and 2002. Extensive renovation measures have been carried out within the portfolio since 2015.
The deal follows LEG's purchase in August 2019 of a larger portfolio with a total of 730 residential units, of which about half are located in Lower Saxony.
'We intend to continue to expand in nearby regions outside North Rhine-Westphalia in order to strengthen our portfolio,' said LEG CEO Lars von Lackum. 'We are pleased to have acquired an attractive portfolio with a focus on north-western Germany for the second time this financial year now and to systematically establish a market presence there.'
BNP Paribas Real Estate was given an exclusive mandate for the sale by the Baum Group.
The transaction is still subject to approval by the responsible antitrust authorities. Transfer of ownership is scheduled for December 31.