16 Nov GIEAG acquires residential property in Stuttgart and plans to develop its investment portfolio
GIEAG Immobilien AG (GIEAG) is starting to further develop a residential portfolio in Stuttgart via its subsdiary GIEAG Wohnen GmbH. In this regard GIEAG has acquired a residential property with 95 apartments and an underground parking lot with 92 parking spaces. The property has a total rental area of almost 4,100 square meters. GIEAG will now have the purchase agreement for this property notarised. It has been agreed not to disclose the seller and the purchase price.
GIEAG is planning to upgrade the property. It currently has a vacancy rate of around 25 percent and thus substantial potential to add value. The property currently throws off annual rent (without heating costs) of around EUR 0.4 million, which is significantly lower than the level on the market.
The eight-storey apartment building was built in 1995 and is located in direct proximity to the new Europaviertel region in the north of Stuttgart. It is directly opposite the Milaneo shopping center and the new high rise “Cloud No. 7”. The property has an excellent traffic infrastructure thanks to its connections to both public transport as well as the A8 and A81 motorways. Stuttgart’s main train station can be reached by foot in just a few minutes.
The newly acquired apartments have a state-of-the-art layout and most of them have balconies or terraces. A large proportion of the units are one-room apartments with a size of 27 to 44 square meters. In addition, the property also has five two-room apartments with 66 square meters and one three-room apartment with 86 square meters.
Axel Alferi, GIEAG Wohnen GmbH’s managing director commented: “The new apartments are in an excellent location in Stuttgart and are in good physical condition. We will redesign the residential units step by step thus upgrading the entire property. We believe that this project will yield attractive returns on the equity employed.”