Deutsche Investment Acquires “Viktoria” Portfolio in the German States of Saxony and Thuringia

Deutsche Investment has acquired the “Viktoria” portfolio with a total of 176 residential and commercial units in sought-after locations in Saxony and Thuringia. The acquisition was completed on behalf of “Deutsche Investment – Wohnen Deutschland I,” a recently launched property fund.

The properties of the “Viktoria” portfolio with a total lettable area of around 11,600 square metres are located in good residential areas of Leipzig, Dresden, Erfurt, Chemnitz and Bautzen. The occupancy rate across the portfolio assets is currently around 90 percent. “The five locations ensure a high degree of diversification in line with the investment strategy of the “Deutsche Investment – Wohnen Deutschland I” separate asset pool, and the growing demand for them makes it safe to expect a stable occupancy rate and positive rent performance, so that the regular net cash-on-cash return will match our forecast,” explained Tamay Demirel, Transaction Manager for the Region of East German States. During the transaction process, Deutsche Investment was advised on legal aspects by the law firm GÖRG Partnerschaft von Rechtsanwälten mbB and in regard to the technical due diligences by Drees & Sommer. NICOLAS SCHEIDT Immobilien and OLLIGES Real Estate Consulting provided counsel to the seller side.

The “Deutsche Investment – Wohnen Deutschland I” separate asset pool represents an open-ended special AIF whose targeted investment volume is c. 300 million euros. The investment strategy seeks to build up a balanced real estate portfolio for residential rental business purposes with a nationwide investment focus and a planned allocation of 50% minimum in Class A cities and 50% maximum in fast-growth cities.
The “Deutsche Investment – Wohnen Deutschland I” separate asset pool is one of six special property funds overall that Deutsche Investment has launched in the residential asset class so far.

“When developing this bespoke investment strategy, we focused on residential as the core asset class, because it has proven remarkably resilient, especially during the pandemic. With the transaction now completed, our seed investors enabled us to secure the first residential properties within the framework of a portfolio acquisition, and thereby to lay the foundation for the swift build-up of a fund portfolio with a robust risk/return profile,” said Enver Büyükarslan, Director for Transaction Management at Deutsche Investment Kapitalverwaltung AG.