On 10 August, LEG concluded a purchase agreement to acquire a portfolio of around 3,750 apartments from VIVAWEST. The locations are situated in core markets for LEG, such as Duisburg, Essen, Gelsenkirchen and Hagen, where LEG already has significant management expertise and can realise a high level of synergy thanks to the acquisition portfolios often in the direct vicinity. A key element of LEG’s growth strategy remains the targeted reinforcement of its market positioning in NRW.
“By acquiring 3,750 apartments in our core markets, we are continuing to advance our focused growth strategy. Attractive acquisitions cannot be taken for granted given the currently modest supply of residential portfolios. So we are all the more delighted to be giving our market presence a further boost with this targeted transaction,” says LEG CEO Thomas Hegel. “As the acquired portfolio contains properties in the direct vicinity of other LEG neighbourhoods, we can offer our new tenants professional letting services from the get-go and continue the neighbourhood development.”
“It was important for us to leave the properties in good hands with roots in the region, in order to guarantee tenants uninterrupted service,” says VIVAWEST Managing Director Claudia Goldenbeld. “We are therefore delighted that LEG, with its decades of housing industry experience, will continue the expert management of these locations. The sale is part of our portfolio strategy, which besides selected divestments envisages increased investment in acquisitions, modernisations and the construction of more than 5,000 new flats by 2022.”
In the last financial year, the portfolio generated rental income of around EUR 13.5 million. It was agreed not to disclose the purchase price. The transaction is still subject to approval by the Bundeskartellamt (German antitrust authority). Until the transfer of ownership, about which the tenants will be informed separately, they can continue to use the familiar information channels and contact partners at VIVAWEST.
With around 130,000 rental properties and approximately 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 796 million in the 2017 financial year.
As one of the leading housing companies in North Rhine-Westphalia, VIVAWEST manages more than 120,000 apartments in around 100 municipalities in the Rhine and Ruhr region and provides a home to roughly 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 : Joint Press Release