1,000 apartments in one region. A not quite everyday investment opportunity
An industrial company wants to sell around 1,000 apartments in central Hesse and is looking for a long-term investor for the portfolio.
About 1,000 apartments
77.391 m² total rental space
"In the end, we were able to find a suitable investor who could meet all the seller's requirements."
The approximately 1,000 properties managed by Buderus Immobilien GmbH are located primarily in the medium-sized centres of Wetzlar and Lollar, but also in other areas of Central Hesse. More than half of them were built between 1951 and 1975. Now the complete real estate portfolio, which also includes new buildings, eight commercial units and 35 undeveloped plots, was to be sold. For Robert Bosch GmbH, to which Buderus Immobilien GmbH belongs to 96 %, the apartments were no longer necessary for business purposes: The sale of all properties was intended to be a sale of the business as a whole. Transaction security for the seller was a top priority. The client Bosch also attached great importance from the outset to a socially acceptable solution for the long-term tenants. This means that the living space should remain affordable in the future.
Complex structures - social criteria
The project of the Corporate Solutions client Bosch was managed by the JLL Residential Investment Team Frankfurt in a structured, audit-proof bidding process. There was great interest in the real estate portfolio from various, mainly regional and national investors. Approved bidders in the bidding process were selected on the basis of various criteria, in particular with regard to social compatibility. As the seller has repeatedly invested in the modernisation of the portfolio in recent years, the 230 buildings were for the most part in a well-maintained condition.
After submitting indicative bids, JLL and the seller's side conducted personal discussions with selected interested parties. After several rounds of bidding talks, exclusive negotiations were continued with an investor until the signing. Due to a close cooperation with the interdisciplinary Bosch team as well as joint discussions with the bidder and the city of Wetzlar the desired solution could be presented. The buyer of the entire portfolio was the Nassauische Heimstätte | Wohnstadt (NHW), one of the leading housing companies in Germany.
A good solution for sellers, tenants and for the region
In NHW, the seller was able to find a long-term oriented and socially acceptable investor. NWH is majority-owned by the State of Hesse. The selling price has met the expectations of the seller. The group has announced investments in the portfolio. The real estate portfolio, which is of such great importance for the region, will continue to offer affordable living space in the future. With this socially acceptable solution, the buyer is acting in accordance with its public mandate. The transaction is one of the largest acquisitions in the history of the Nassauische Heimstätte | Wohnstadt Group, which has thus been able to significantly expand its portfolio in Hesse.