The housing company LEG is acquiring a portfolio of around 2,200 residential units and 30 commercial units in Bremen, Oldenburg, Delmenhorst and Cuxhaven with total rental space of around 140,000 square metres from the Hanover-based Baum Group. Back in August 2019, LEG had acquired a larger portfolio with a total of 730 residential units, of which about half are located in Lower Saxony. With the current transaction, the leading housing company in North Rhine-Westphalia (NRW) is again underlining its aspiration to grow both within and outside its core market.
“We intend to continue to expand in nearby regions outside NRW in order to strengthen our portfolio. We are pleased to have acquired an attractive portfolio with a focus on north-western Germany for the second time this financial year now and to systematically establish a market presence there. This underlines LEG’s ability to make attractive, value-adding acquisitions even in the currently tight housing markets,” says LEG CEO Lars von Lackum.
The properties in the portfolio were constructed between 1920 and 2002. Extensive renovation measures have been carried out within the portfolio since 2015. At around 92 percent, the majority of the rental space is attributable to a total of 36 properties in Bremen and Oldenburg. The apartments have an occupancy rate of around 98.5 percent and an average monthly rent of around EUR 6/m². In the 2018 financial year, the portfolio generated rental income of EUR 10.2 million (in-place rent). The parties agreed not to disclose the purchase price. BNP Paribas Real Estate was given an exclusive mandate for the sale by the Baum Group.
The transaction is still subject to approval by the responsible antitrust authorities. Transfer of ownership is scheduled for 31 December 2019.
With around 131,000 rental properties and more than 350,000 residents, LEG is one of Germany’s leading listed housing companies. In North Rhine-Westphalia, the company is represented with eight branch offices and with personal contacts on site. In the 2018 financial year, LEG generated income of around EUR 767 million from its core rental and lease business. As part of the new construction campaign it initiated in 2018, LEG intends to make a social contribution to the creation of both privately financed and publicly subsidised housing and to construct or acquire at least 500 new apartments every year from 2023 onwards.
Source : Company