Berlin, March 3, 2017 – ADLER Real Estate AG has today signed a purchase contract governing the acquisition of a property portfolio comprising 693 residential and 8 commercial units in Osterholz-Scharmbeck and Schwanewede. Located directly in the Bremen catchment area, these properties currently generate a rental income of more than 2 million euro per annum. The parties to the contract have agreed confidentiality concerning all further financial details.
Sven-Christian Frank, COO of ADLER Real Estate AG, comments: “Some units in the portfolio will require renovation. We will be tackling this issue and expect to be able to speedily and sustainably reduce the comparatively high vacancy rate this way. Apart from this, the properties fit in very well with our objective of offering our tenants quality, yet affordable, living space on the edges of larger conurbations. The location has excellent infrastructure and is appealing for tenants of all age groups and for families, not least because of its excellent connections to the city of Bremen.
The District of Osterholz, including both Osterholz-Scharmbeck and Schwanewede, has around 110,000 inhabitants. The local economy, with its focus on small and medium-sized companies, contributes to an unemployment rate as low as 4 percent. The largest employers in the region are the recycling company FAUN Umwelttechnik GmbH & Co. KG, the specialist vehicle provider Centigon Germany GmbH and the Lidl retail chain, which operates a central warehouse in the region.
According to Sven-Christian Frank, the acquisition illustrates ADLER’s strategic objective of continuing to generate sustainable growth by purchasing smaller-scale portfolios if in line with the Company’s acquisition criteria. “Having consolidated our business in 2016, we now aim to expand it at a moderate rate once again and are currently reviewing other smaller-scale portfolios with a total of around 10,000 units. Here, we are looking above all at regions where we are already present. Given its proximity to Bremen, this portfolio will be a useful addition to our holdings in northern Germany. This way, we can directly integrate the portfolio into our property and facility management activities and thus generate benefits of scale.”