German residential real estate company Adler Group SA said on Tuesday that it had signed a letter of intent with an investment fund for the sale of 14,368 units mainly located in East Germany.
”According to the basic agreement, the agreed property value for the aforementioned portfolio is more than EUR 1 billion,” said the company in a statement.
Adler said this is above the book value of the portfolio as reported by CBRE as of June 30, 2021.
The sale can lead to a considerable reduction in Adler’s level of indebtedness through the repayment of bonds and loans, the company noted.
The completion of the transaction is expected in Q1 2022.