German private residential real estate company Vonovia has agreed to sell a residential portfolio to CBRE Investment Management for around €560 million.
The global real estate asset management company is acquiring a total of five portfolio properties with 1,350 residential units in Frankfurt, Berlin and Munich.
Two of the five properties are in the final stage of construction with completion expected by end of August 2023. The book value of the properties as of Dec. 31, 2002, and the anticipated costs for completion amount to around €600 million.
The closing of the sale is expected during the second and third quarter of 2023 after the customary closing conditions have been met.
Just in April 2023, a reliable joint venture partner was found for a minority stake in Südewo, acquiring almost 30 percent at a purchase price of around €1.0 billion. The investment was thus made at nearly book value.
Rolf Buch, Chief Executive Officer of Vonovia SE: “A sale of this size to a renowned company like CBRE Investment Management once again underlines the intrinsic value of our portfolio. Following the joint venture partnership, this is the second success in a short period of time. Amounting to a total of more than €1.5 billion, we already have almost reached our sales target for this year. Furthermore, we assess the results of our negotiations as a positive signal for the entire business: after a very difficult first quarter 2023 with little movement, the market is cautiously opening. Buyers and sellers can come to an agreement again. This in itself is a cause for optimism.”
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