Berlin’s GSW buys €330m portfolio

08 November 2011, 08:02 PM

Berlin listed housing group GSW has completed the purchase of a 4,800 housing portfolio for €330m from Fortress’ listed German housing group Gagfah, and expects a positive impact on this year’s financial results.
Board Member Jörg Schwagenscheidt said the new assets increase the average rent in its overall portfolio. “We are delighted that our promise to invest the €115m from the IPO by the end of next year has therefore been fulfilled early,” he added. GSW achieved its initial public offering at second try this April, raising €468m. It financed the portfolio with 34% equity.
Most new assets are situated in good locations Berlin, said GSW.

Some two-thirds were built in the 1960s, 18% in the ‘20s and 18% in the ‘50s. “The housing stock, most of which has been owned by Gagfah only since 2007, has been well maintained,” said Schwagenscheidt. Average rent is at €5.58 per sq.m. per month – above Berlin’s average of €5.21 and GSW’s €4.94. Vacancy rate across the new assets is 2.8%.
Founded in 1924, GSW was acquired in 2004 from the State of Berlin by private equity group Cerberus and Whitehall Funds, the property arm of investment bank Goldman Sachs, and at end December valued its property portfolio at €2.6bn. Cerberus and Whitehall recently cut their shareholding in half. pie

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