Corestate, a specialist real estate investor based in Zug, Switzerland, has disposed of a German residential portfolio to Adler Real Estate.
The 2,400 units are located in the Hanover/Braunschweig region in Northern Germany and were acquired in an off-market transaction at the end of 2012.
The parties have agreed to keep the sales price confidential.
Thomas Landschreiber, chief operating officer at Corestate Capital, says: “We were able to implement our capital investment programme and eliminate the maintenance backlog due to our local asset and property management teams while improving the overall quality of the portfolio in only 14 months. The repositioned portfolio was now acquired by the listed Adler Real Estate company as part of its expansion strategy.
“This transaction compliments the existing portfolio of Adler since they are focusing on B-location residential properties with a positive cash flow. This deal underpins the existing strong demand for stable residential portfolios. Especially long-term oriented portfolio managers who expect strong single-digit returns show an increased interest.
“Corestate Group will continue to focus on management-intensive real estate portfolios that show a potential for value increase."