Located in the Metro Ruhr area of Germany, mainly in the cities of Recklinghausen, Hamm and Herne, the portfolio comprises 1,406 homes, of which 192 are houses and the remainder apartments, and six commercial units covering more than one million sf. The portfolio generates annual income of euro 4.5 million ($5.2 million) reflecting a running yield of approximately 6.3%.
Completion is anticipated by Dec. 31 and is subject to approval from Wfa, the state lending institution which provides subsidized loans for social housing development. Approval will enable Grainger to assume the current low cost debt on part of the portfolio.
'This is an opportunity to acquire high quality assets. It is also an important step forward in achieving our European strategy and the portfolio provides us with a strong platform in Germany from which we can grow," says Rupert Dickinson, chief executive of Grainger.
The portfolio sale represents part of PSI's owner's, TUI AG, decision to sell its real estate activities and refocus on travel, leisure and shipping. "We are pleased to be able to sell this portfolio to Grainger as this completes the divestment of our German residential real estate assets. Grainger is a long-term investor with extensive experience in the tenanted residential sector and we believe it is the right owner of these assets," says Hans-Peter Rietze, managing director of PSI.
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