BERLIN-Grainger Trust, the UK's largest quoted residential property investor, has exchanged contracts to acquire three separate portfolios of mainly German residential property for a total of euro 66.4 million ($80.3 million) cash, equating to euro 907 per sq meter ($1.096). The board plans to fund the acquisition through existing resources but in a statement, they explain that "an element of new non-recourse debt may be obtained in due course."

Located primarily in the South Western region of Baden-Wuerttemberg (575 units) and Berlin (411 units), the total investment includes 926 residential units and 60 commercial units covering approximately 73,180 sm. The portfolio generates an annual income of euro 4.8 million, reflecting a gross yield of approximately 7.2%. The net yield after operating costs is expected to be approximately 5.7%.

"This acquisition increases our presence in the German market and further enhances our geographic diversification," explains Grainger chief executive Rupert Dickinson. "These are quality properties and support our long-term strategy. We are getting exposure in the dynamic region of Southern Germany and a presence in Germany's capital."

Grainger has also completed its euro 71.5-million ($86.4-million) acquisition of the Preussag residential portfolio, a process it began last year. The two sets of acquisitions brings its total German residential portfolio to 2,332 units.