September 26, 2019 / 9:18 PM / 5 months ago

Germany's Gewobag buys flats from ADO Properties for $1 billion

FRANKFURT (Reuters) - German real estate group Gewobag has signed an agreement to buy about 6,000 flats in Berlin from peer ADO Properties (ADJ.DE) for 920 million euros ($1 billion), it said late on Thursday.

The deal, planned to be realized in December, underscores Gewobag’s growth ambition to raise its portfolio to more than 80,000 residential units over the next decade. The company has already acquired about 1,100 flats so far this year.

The transaction adds to a flurry of deals in Germany’s real estate sector.

Earlier this week, Adler Real Estate (ADLG.DE) agreed to buy ADO Group ADO.TA, a Tel Aviv-listed shareholder in ADO Properties. Separately, Vonovia SE (VNAn.DE) unveiled plans to buy a stake in Swedish peer Hembla for 1.14 billion euros.

Gewobag board member Markus Terboven said that the deal represented a good opportunity in light of the market’s dynamic development.

“It also shows that we’re well positioned to play a role in Berlin’s real estate in line with our public mandate,” he said.

ADO Properties, in a separate statement, said it was considering various opportunities with respect to the sales proceeds, including paying down debt and acquiring additional real estate portfolios.

Reporting by Christoph Steitz, Editing by Rosalba O'Brien

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