Squire Patton Boggs has advised Deutsche Wohnen SE on the sale of 6,380 residential and 38 commercial units to LEG Immobilien AG.
The sale will result in a change of ownership of almost 420,000 square meters in the Rhein-Neckar regions with a focus on Ludwigshafen and Mannheim, several residential areas in Braunschweig, in the vicinity of Coblenz, in Hannover/Laatzen, and a housing complex in Cologne. The apartments have an occupancy rate of almost 98% and the portfolio generated rental income of around €30 million in the 2019 fiscal year.
With around 136,000 rental apartments and more than 365,000 residents, LEG is a leading housing company in Germany, listed on the MDAX of the German stock exchange. In the 2019 fiscal year, LEG generated revenue of approximately €809 million from its core business of letting and leasing. As part of its development campaign launched in 2018, LEG intends to make a social contribution to creating both privately financed and publicly subsidized housing and to construct or purchase at least 500 new apartments annually from 2023 onwards.
Deutsche Wohnen is one of the leading listed real estate companies in Europe. The company’s operational focus is on the management of its own residential real estate portfolio in dynamic metropolitan regions and urban centres of Germany. As of 31 March 2020, its portfolio consisted in total of around 164,300 units, comprising 161,500 residential and 2,800 commercial units. Deutsche Wohnen SE is listed on the DAX of the German stock exchange.
Under the leadership of Berlin Corporate Partner Dr. Kai Mertens, the Squire Patton Boggs team including senior associate Alina Navarro-Melendo and associate Uwe Martin, was able to assist its long-time client in successfully implementing the transaction. Dr. Mertens said: “We are happy that we were able to use our experience to support Deutsche Wohnen in implementing its corporate strategy.”