Blackstone strikes partial €369m exit of German resi assets

The New York firm has packaged up assets acquired in 2011/2012 from two separate transactions and sold them to Germany’s Deutsche Wohnen, at the same time taking a stake in the listed company.

The Blackstone Group has made an exit from its Blackstone Real Estate Partners Europe III fund, selling a 6,900-strong portfolio of Berlin residential property to Deutsche Wohnen for €369 million ($489 million).

The transaction has been structured as a cash and share deal, with Blackstone accepting part payment in the shape of a 5 percent shareholding in the publicly-listed group. The cash consideration is €260 million with the balance of value being delivered via 8.15 million shares.

Blackstone’s European team committed to invest in the assets in 2011 via two different German multifamily portfolios bought out of bankruptcy. The portfolio for sale has been packaged up from both those transactions after making various improvements to the assets.

Kenneth Caplan, head of European Real Estate at the firm, said in a statement that it was a “superb transaction” for both Blackstone and Deutsche Wohnen.

The latter cements its position as one of the biggest publicly-listed companies in Germany, taking its holdings to 90,300 residential units, of which 54 percent are located in greater Berlin.

“We are excited about this growth opportunity in Berlin, our largest core region,” said Michael Zahn, chief executive officer of the company.