Deutsche Annington Said to Buy $400 Million German HomesDalia Fahmy
Deutsche Annington Immobilien SE, Germany’s biggest residential landlord, agreed to pay about 300 million euros ($400 million) for more than 5,000 homes in Berlin and other eastern German cities, according to a person with knowledge of the deal.
Deutsche Annington, based in Bochum, bought the homes and about 210 commercial units from CitCor Residential Group, said the person, who asked not to be identified because the information is private. CitCor is a joint venture between New York-based Apollo Global Management LLC and Corpus Sireo Holding GmbH. Deutsche Annington announced the deal in a statement today, without disclosing the value.
“The new apartments are located in growth areas in Germany with attractive markets,” Chief Operating Officer Klaus Freiberg said in the statement. The purchase will have a positive effect on funds from operations, a measure of a property company’s profitability, Deutsche Annington said.
Real estate companies are buying German homes to take advantage of rising property values and rents in Europe’s biggest economy. Investors acquired 15.8 billion euros of homes in 2013, the most since 2005, according to data compiled by Chicago-based broker Jones Lang LaSalle Inc.
Deutsche Annington is acquiring 344,000 square meters (3.7 million square feet) of residential and commercial space with this purchase, which lifts the company’s total number of homes in Berlin to 16,200. About half of the homes are in the German capital while the rest in Dresden, Jena and Leipzig.
The deal is expected to close at the end of this year, Deutsche Annington said.
CitCor Residential Group is a joint venture between Citigroup Property Investors and Corpus Sireo, according to the statement. Citigroup Property Investors was acquired by Apollo Global Management LLC in 2010.
In February, Deutsche Annington agreed to buy 41,500 apartments valued at about 2.4 billion euros.