- What Gewobag has bout a €920m portfolio of Berlin residential assets from ADO Properties
- Why ADO has completed its asset management strategies following the purchase of the properties in 2015
- What next ADO is to be part purchased by ADLER
Frankfurt-listed ADO Properties has agreed to sell a portfolio of around 5,800 flats in Berlin to Gewobag for €920m.
The state-owned company is acquiring the flats across 23 properties that are located in the Spandau and Reinickendorf districts in the west and the north of the city. The properties are 98% occupied.
According to a statement by ADO, since purchasing the units in 2015 it has “made significant investments in the portfolio and thus substantially improved the quality of living” and “carefully implemented modernisation projects while keeping rents low”.
The proceeds will see €340m of debt paid off and ADO’s loan-to-value will reduce from 38% to 21%.
The deal comes at a time of corporate change at ADO. Tel Aviv-listed ADO Group, which owns a 33% stake in ADO Properties, agreed to sell its stake in the company earlier this month to ADLER Real Estate for €708m. ADO and ADLER together own €9.4bn of properties.
Ran Laufer, chief executive of ADO Properties said: “Berlin is one of the largest and most dynamic residential property markets in Europe. Demand for modern living space remains high and we see considerable growth potential here. We will continue to examine possibilities to recycle capital by selling buildings which we have improved and by acquiring buildings and portfolios that have more upside.”
