Germany鈥檚 residential property sector continues to attract capital, with Fonci猫re des R茅gions looking to take control of Danish firm, Berlin IV.
The move by the French REIT鈥檚 German Immeo subsidiary for the Copenhagen-listed housing specialist is the latest example of the hunt for units 鈥� and, crucially, rental income.
Berlin-based Deutsche Wohnen recently dropped its bid to acquire residential property rival LEG Immobilien in a deal that would have created a 鈧�17bn ($18.6bn) real estate portfolio.
LEG had recommended the merger to shareholders .
Rival Vonovia, formerly Deutsche Annington, is now expected to make an offer for LEG, which owns 110,000 rented residential assets.
, Patrizia Immobilien took over a real estate fund with 鈧�900m of residential assets 鈥� of which 5,000 units were in Berlin.
At the end of March, 5,750 residential units in Berlin changed hands when Deutsche Wohnen sold a portfolio to ADO for 鈧�375m.
Deutsche Annington鈥檚 takeover of Gagfah created a 鈧�21bn portfolio of around 350,000 residential units.
For Fonci猫re des R茅gions, its ongoing move for Berlin IV could add 2,735 central Berlin units and 鈧�16m in rental income to its portfolio.
Fonci猫re des R茅gions, active in Germany鈥檚 increasingly popular residential sector since 2005, said the Berlin IV portfolio, worth 鈧�348m, held 鈥済reat value-creating potential鈥� in one of the 鈥渕ost dynamic German cities in terms of demographic prospects and purchasing power鈥�.
If Fonci猫re des R茅gions鈥檚 Immeo gets further than Deutsche Wohnen in its respective move, then a gradual sale of some assets is likely.
More than 30% of the Berlin IV portfolio would be gradually sold from 2017.
The move follows Immeo鈥檚 鈧�240m deal last year to buy a portfolio of 3,400 residential units in Berlin and Dresden that generates 鈧�15m in annual rents.
