Commerz Real has acquired the so-called “Millennium Portfolio” in Germany, worth €2bn according to media reports, from Generali Lebensversicherung AG for its open-ended real estate fund Hausinvest. According to Commerz Real, this is the largest real estate transaction in the company’s history.
”Silence has been agreed on the purchase price,” said in a press release.
The Millennium portfolio comprises 26 office, 14 residential and 9 retail properties with a total rental space of over 352,000 square meters in central city locations of the top 7 cities of Berlin, Dusseldorf, Frankfurt am Main, Hamburg, Cologne, Munich and Stuttgart as well as Giessen, Leipzig and Unterhaching.
Across all properties, the letting rate is around 93 percent. The portfolio is also diversified in terms of tenant structure.
“We were able to acquire this portfolio, which is unique in terms of its quality, for our investors because we put our strengths to optimum use,” said Andreas Muschter, Chairman of the Board of Management of Commerz Real.
“It was important to be fast, professional, focused and reliable in order to provide the seller with transaction security quickly. Exactly for such occasions, we keep Hausinvest open to new investors,” he added.
“We have prevailed in a very competitive process in the end. The portfolio pays off perfectly to our investment strategy of strengthening the German share of the fund and of realizing the best possible mix of all types of use,” said Henning Koch, Global Head of Transactions at Commerz Real.
Fund manager Mario Schüttauf said: “This absolutely top-notch acquisition will make Hausinvest even more profitable. The goal is to keep in particular the more than 1,000 apartments in the long term.”
“We want to give the tenants, but also the cities and communities the desired security, that there will not be any measures to maximize short-term profits. In addition, residential real estate means a significant expansion of the residential share in the fund. Commerz Real is thus much closer to its stated goal of investing about two billion euros in housing in the next 4 years.”
The real estate package belongs to Generali Lebensversicherung AG. Most of them are part of the Viridium Group, the leading specialist for efficient inventory management in life insurance.
Commerz Real was supported by the consulting firms CMS Hasche Sigle (law), Arcadis (technology) and KPMG (taxes) as well as Wertgrund Immobilien AG (housing). Allen & Overy provided legal advice to the seller. BNP Paribas Real Estate brokered the transaction.