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Adler buys 700 apartments in Berlin and increases FFO by 45 %
Adler Real Estate is buying the "Wasserstadt Mitte" development in Berlin’s Europacity near the main station. The new quarter will have roughly 700 apartments with about 44,000 sqm living space plus about 5,200 sqm office and commercial space. The project is being developed by Benson Eliott and Kauri Cab, who were advised on the transaction by Colliers International. Completion is anticipated for late 2019. Adler is taking over 94.9 % of shares in eight development companies and will be paying up to €120mn before the project is finished. After completion and leasing, the company is expecting an indicative market value of around €385mn and annual net rent income of about €11mn. Without this latest acquisition in Berlin, Adler has increased its portfolio in the first nine months by 6.4 % compared to last year, or 53,254 units. Net rent income rose by 3.8 % to €130.5mn. This and debt reduction during the first half of the year improved the firm’s FFO I by 45.3 % to €27.1mn.
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