Noerr has advised Deutsche Annington Immobilien SE on today’s agreement to sell a part of the former Vitus portfolio to a subsidiary of LEG Immobilien AG. The transaction involves around 9,600 residential units in North Rhine-Westphalia and the associated asset and property management of Vitus.

The Noerr team acting in the transaction, led by Dr. Holger Alfes, Christoph Brenzinger and Prof. Dr. Alexander Goepfert, previously advised Deutsche Annington on the acquisition of the entire Vitus portfolio which was completed on 1 October 2014. With transaction costs, the total investment for LEG is approx. EUR 484 million.

The portfolio is distributed over various locations in NRW, while its most important local markets are Mönchengladbach, Wuppertal and Leverkusen. The top six locations account for a share of 88%. The current annualised net cold rent is around EUR 35 million, rent per square metre EUR 4.76, a level with further upside potential, and the vacancy rate is 3.9%, highlighting the stable nature of the portfolio.

After approval by the German cartel authority, closing of the transaction is expected to occur by the end of October 2014.

In the real estate sector, Noerr, with its interdisciplinary Real Estate Investment Group (REIG), is among the leading advisors on transactions and financing. The Group, led by Prof. Dr. Alexander Goepfert, offers integrated advice and combines real estate, corporate, finance and tax know-how. In the current year, REIG has advised, among other clients, Deutsche Annington on the takeover and integration of residential portfolios of DeWAG and the Vitus Group. Only recently, REIG teams also advised the real estate funds manager Activum SG on taking over formart, the second largest residential developer in Germany from HOCHTIEF and also acted for Bayerische Versorgungskammer in the financing of the Leipziger Platz Quartiers by a mixed syndicate comprised of banks and the BVK.

Advisor Deutsche Annington Immobilien SE: Noerr LLP

Dr. Holger Alfes (REIG/corporate), Christoph Brenzinger (REIG/real estate), Prof. Dr. Alexander Goepfert (REIG/real estate, joint lead)

Peter Stauber (cartel law), Lutz Enno Werner (REIG/tax)
Associates: Bodo Dehne (REIG/corporate), Dr. Karsten Fink (REIG/finance), Dr. Jennifer Konrad (corporate), Dr. Maximilian Schulte (REIG/real estate)