LEG concluded a purchase agreement to acquire a portfolio of around 2,000 apartments from VIVAWEST. The properties are located in the greater Aachen area, the Lower Rhine and the Ruhr area, where LEG already has significant management expertise and hence can realise a high level of synergies. Almost half of the units are state-subsidised housing. A key element of LEG’s growth strategy remains the targeted reinforcement of its market positioning in NRW.
“Our aim is clear: We want to continue to grow. The acquisition of 2,000 extremely well-managed apartments from VIVAWEST means we remain a net buyer in 2019 despite the substantial streamlining of our portfolio this summer. Attractive acquisitions cannot be taken for granted given the current modest supply of residential portfolios – especially from a proven, reliable business partner and reliable housing company like VIVAWEST. This makes us all the more delighted to be giving our market presence a further targeted boost with this transaction,” says LEG CEO Lars von Lackum. “As the acquired portfolio is located in our focal region of North Rhine-Westphalia, we can offer our new customers professional letting services from the get-go and continue the neighbourhood development.”
“The sale forms part of our long-term portfolio strategy which, in addition to selected divestments, involves significantly increased investment in energy modernisation and the new housing that is urgently required. We will construct more than 5,700 new homes by 2023, 20 percent of which will be state-subsidised,” says Claudia Goldenbeld, Chair of the VIVAWEST Management Board. “It was important for us to leave the properties in the good hands of a company with roots in the region in order to ensure uninterrupted service for tenants. As such, we are delighted that LEG, with its decades of housing industry experience, will continue the expert management of these locations.”
In the 2018 financial year, the portfolio generated rental income of around EUR 7.1 million (in-place rent). The parties agreed not to disclose the purchase price. The transaction is still subject to approval by the Bundeskartellamt (German antitrust authority). Transfer of ownership is scheduled for 1 January 2020. Until then, the tenants, who have already been informed separately, can continue to use the familiar information channels and contact partners at VIVAWEST.
With around 131,000 rental properties and more than 350,000 residents, LEG is one of Germany’s leading listed housing companies. The company has eight branch offices in North Rhine-Westphalia, providing personal local contact. LEG generated rental and lease income of around EUR 767 million in the 2018 financial year.
As one of the leading housing companies in North Rhine-Westphalia, VIVAWEST manages approximately 120,000 apartments in around 100 municipalities in the Rhine and Ruhr region, providing a home to some 300,000 people. Our property service companies provide residential services and thus guarantee security and living quality for our customers – from the management of green spaces, tradesman services and multimedia provision to meter reading and billing services.
Source : LEG