Allan Saunderson is managing editor of Property Finance Europe and a contributor to GlobeSt.com.

BERLIN-Vienna-quoted conwert Immobilien has bought three property companies from Germany's Colonia Real Estate comprising 1,016 Berlin apartments for €67 million. Kronberg International also took part in the transaction, purchasing a minority share of 5.1% . CRE said the purchase price was above book value, at an entry yield of over 7%.

CRE is Germany's third largest listed residential property company and the portfolio it is divesting comprises 937 residential and 79 commercial units, built in 1900-1920s. The consortium will also take over existing financing of the real estate portfolio totaling €50 million. The closing should be finalized by the end of September.

"We were able to reduce the vacancy rate (of the portfolio) from 11.4% to less than 6% in a relatively short time. Today's sale is a further signal for a recovery of the transaction market and a steadily increasing demand for residential real estate," noted Stephan Rind, CEO of Colonial Real Estate.