A consortium of the German real estate company ZBI and the fund company Union Investment are in talks to acquire residential property group BGP Gruppe.
Negotiations are under way to buy the group of companies including the real estate portfolio.
Reuters estimated the sales price to be €2 billion ($2.3 billion). It would be one of the largest deals on the German residential investment market.
The BGP real estate portfolio comprises a total of around 16,000 residential and commercial units in the metropolitan regions of Berlin, the Rhine Ruhr (including Cologne and Düsseldorf), Rhine Main, Nuremberg and Munich, as well as other core areas such as Kiel or Münster.
ZBI and Union Investment aim to strengthen the joint residential real estate fund platform and significantly increase the volume of funds under management.
The transaction is expected to close in the first half of 2019.
BGP is backed by the Chinese sovereign wealth fund CIC. In Oc
