Domicil buys 2,300-home Swiss Life German resi portfolio
Investment and asset manager Domicil Real Estate Group has acquired the Now portfolio of 86 residential buildings from Swiss Life Asset Management.
Spread across 20 locations in seven clusters throughout Germany, most of the assets are located in metropolitan regions, with more than 50% in state capitals.
The units are located around Lübeck, Berlin, Bremen, Dresden, Leipzig, Rostock, Hanover, Erfurt as well as Dortmund, Gelsenkirchen and Dusseldorf, some of Germany’s fastest-growing economic regions.
The portfolio comprises 2,535 units of which 2,389 are residential units. The total lettable area amounts to 156,436 sq m with vacancy at 6.8%.
Portfolio provides development possibilities
Domicil said that the acquisition is an important step in its growth strategy as it “promises enormous development potential”.
“The current vacancy rate also provides an opportunity to make more rented housing available and to stabilise rental income,” said Domicil Real Estate chief investment officer Andre Schmöller.
The average apartment size of 61 sq m meets the demand for two- to three-bedroom apartments. More than 85% of the apartments are smaller than 80 sq m. Around 40% have been refurbished since 2015 and Swiss Life invested approximately €15.3 million in the sustainable management of the portfolio.
