Fonciere des Regions purchases EUR 351 million worth of homes in Germany
Paris-based Fonciere des Regions (FDR) purchased 4,000 homes in Germany for a total of EUR 351 million or USD 477 million. The properties were located in Berlin and Dresden. Fonciere Developpement Logements (FDL) acquired the assets last month. FDR holds a 59.7% stake in Fonciere Developpement Logements. The latest purchase brought to EUR 394 million FDR's total spending on German properties in 2013.
FDL was set up by FDR in 2005 to look for investment opportunities in the European housing market. To take advantage of Berlin's growing residential market, FDL had been growing its portfolio in the city. FDL's portfolio in Germany is valued at EUR 2.4 billion. One-fifth of this is located in Berlin. Data gathered by Immobilien Scout revealed that home prices in Berlin had increased to around 48% in the last five years.
In a statement, FDR said it would position itself in the best locations so that it can grow the income it derives from rent.