Germany's Gewobag buys flats from ADO Properties for $1 billion

Adler Real Estate AG

26/09/2019 22:13

FRANKFURT, Sept 26 (Reuters) - German real estate group
Gewobag has signed an agreement to buy about 6,000 flats in
Berlin from peer ADO Properties  ADJ.DE  for 920 million euros
($1 billion), it said late on Thursday.
    The deal, planned to be realised in December, underscores
Gewobag's growth ambition to raise its portfolio to more than
80,000 residential units over the next decade. The company has
already acquired about 1,100 flats so far this year.
    The transaction adds to a flurry of deals in Germany's real
estate sector.
    Earlier this week, Adler Real Estate  ADLG.DE  agreed to buy
ADO Group  ADO.TA , a Tel Aviv-listed shareholder in ADO
Properties. Separately, Vonovia SE  VNAn.DE  unveiled plans to
buy a stake in Swedish peer Hembla for 1.14 billion euros.
 urn:newsml:reuters.com:*:nL5N26E1YX  urn:newsml:reuters.com:*:nL5N26E0QV
    Gewobag board member Markus Terboven said that the deal
represented a good opportunity in light of the market's dynamic
development.
    "It also shows that we're well positioned to play a role in
Berlin's real estate in line with our public mandate," he said.
    ADO Properties, in a separate statement, said it was
considering various opportunities with respect to the sales
proceeds, including paying down debt and acquiring additional
real estate portfolios.
($1 = 0.9158 euros)

 (Reporting by Christoph Steitz, Editing by Rosalba O'Brien)
 ((christoph.steitz@thomsonreuters.com; +49 69 7565 1269;
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