GIEAG Immobilien AG (GIEAG) today announced that is has further expanded its property holdings by signing agreements to acquire three residential portfolios with a total of 318 units at three sites. The 118 apartments and 200 single-family homes are located in the Trier, Bitburg and Idar-Oberstein catchment area and have a combined living space of approximately 34,000 square metres and a total site area of around 103,000 square metres. The purchase price was around EUR 17 million.
All of the properties were built as a solid construction in the late 1980s and are structurally sound. GIEAG believes that the combination of available infrastructure and close proximity to large American military sites creates strong prospects for working actively with the property portfolio. This work will primarily consist of comprehensive maintenance and renovation measures coupled with the repositioning of the three portfolios on the property market. GIEAG will contribute its extensive property project development expertise to these efforts.
While the letting situation is already satisfactory at two of the three sites, the third location is in clear need of maintenance and thus has letting potential that should be enhanced over the next few years. A consortium of savings banks from Baden-Württemberg and Rhineland-Palatinate providing the external funds required for both the acquisition and implementation of the planned measures. GIEAG will manage the properties directly.
This portfolio acquisition increases the size of the Group’s total residential property portfolio to more than 1,000 units and enables the Company to continue pursuing a business model based on a combination of property development and portfolio management.
Philipp Pferschy, member of the GIEAG Immobilien AG Management Board, comments: “This newly acquired residential portfolio is interesting to us primarily due to the extensive possibilities it offers for actively developing the portfolio in a way that adds value. We have been extremely successful with similar projects in the past, including the site near a former air base at Leipheim, where we also achieved full occupancy by modernising and optimising the portfolio.”
GIEAG was advised by René Reif Consulting GmbH as finacial advisor and Werner, Luger & Partner Rechtsanwälte as legal counsel.
GIEAG is a family-run Munich real estate stock corporation. The shares of GIEAG Immobilien AG are traded on the Munich Stock Exchange as well as the Frankfurt Stock Exchange and Xetra. By combining the three asset classes - office, residential, logistics - and the two service areas of development and portfolio management, the company offers stability that is unique in the market. The GIEAG team of experts is a guarantor for innovative and forward-looking concepts.
Over the past 22 years, GIEAG Immobilien AG has developed and optimised a large number of real estate projects with areas of up to 145,000 square metres and an individual investment sum of 15 to 150 million euros. Partnership, transaction security, perseverance and speed are the basis of sustainable value development for GIEAG.