ADLER Real Estate acquires €200m portfolio

ADLER Real Estate AG in Frankfurt has offered their agreement to obtain a majority share in a big residential property portfolio of around 6750 units.

This acquisition is in line with the company’s continued growth strategy.  The deal is expected to be finalized by the close of this year.

The deal includes the acquisition of major shareholding in Jade mbH, the housing association situated in Wilhemshaven on the North Sea coast of Lower Saxony.  Jade is the holding company which owns the assets, as well as the facility and property manager.  The value of this portfolio is much higher than €200m.

Jade owns 6641 residential and 31 commercial locations, with 74 apartments available for student accommodation.  All the properties are in good condition and have been maintained very well, with very little capex backlog and deferred maintenance.  The units are situated in the better areas of the largest naval site in Germany.  Almost two-thirds of the units were constructed during the 1930s and 1940s.  It earns a current net income from rentals of around €20.5m.

The occupancy rates of the properties are close to 93% and have experienced an upward trend lately due to the positive drive in the economy due to the construction of a new deep sea water port.  ADLER is assured of positive contribution from this newly acquired portfolio as it is due to generate positive cash flows.

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