German firm buys apartment portfolio for €225m
LEG Immobilien, a listed German real estate firm, has agreed to acquire a 3,500-unit residential portfolio in its core market of North Rhine–Westphalia for €225 million ($252 million). A seller was not disclosed. The portfolio’s annual net rent is currently around €14.2 million ($15.9 million), and 3.6 percent of the apartments are vacant. To partially finance the acquisition, LEG issued new equity shares. The firm completed the increase of its share capital through an accelerated bookbuilding process. Approximately 1.2 million new registered shares with dividend entitlement were placed with international institutional investors at a price of €61.54 ($68.94) per share. Upon closing of the share offering, which is scheduled for June 29, 2015, the placement is expected to result in total gross proceeds of €73.6 million ($82.45 million) to the company.