Real estate group Deutsche Annington Immobilien is expanding its portfolio in Germany by purchasing 41,500 apartments valued at approximately â¬2.4 billion ($3.3 billion), according to a company announcement.
Deutsche Annington said in a statement it had agreed in principle to acquire 30,000 residential units for â¬1.4 billion from Vitus group, owned by Blackstone and private equity firm Round Hill Capital.
The firm will acquire about 11,500 residential units managed by DeWAG for about â¬970 million. Deutsche Annington is increasing its presence in northern Germany with more than 9,500 residential units in Bremen and approximately 9,250 residential units in Kiel.
The vacancy rate for the combined portfolio is four percent, the group said.
The deals mirror the trend of other investors venturing into German real estate in search of favorable income streams. In 2013, investors purchased â¬15.8 billion worth of homes, the highest amount since 2005, according to Jones Lang LaSalle.