French REIT spends €202 on German apartments
Foncière des Régions, a French REIT, has acquired a 1,800-unit German residential portfolio for €202 million ($214 million). A seller was not disclosed in its annual report. Three-quarters of the apartments are located in Berlin (76 percent), in the boroughs of Mitte (27 percent), Neukölln (26 percent), Friedrichshain-Kreuzberg (14 percent) and other Berlin (14 percent). The remaining units are located in Leipzig. The average purchase price of the Berlin units is quoted at €2,100 per square meter, ($207 per square foot) with rental income of €6.70 per square meter per month ($0.66 per square foot per month). At the end of 2016, FDR’s German portfolio encompassed 40,700 apartment units worth about €4 billion ($4.2 billion).