Brack Capital buys further German residential units

The Netherlands-headquartered Brack Capital has bought a further 430 residential units in northern Germany for €24.5m and said it was in advanced stages of negotiation with an unnamed German bank for a £17.6m non-recourse loan.

The total leasable area of the portfolio is about 29,000 sqm and the units are let to a number of tenants. The occupancy rate is 97% and the annual gross rental income is €1.7 million.

The Tel Aviv-listed Brack Capital Properties N.V. has been active in Germany since 2004, concentrating mainly in the multifamily and retail sectors throughout the country, as well as the condominium development market in Düsseldorf (Grafental). The Germany portfolio, which Brack Capital manages itself, has more than 1.1 million sqm of lettable space.

The commercial assets include shopping centres, power centres, retail parks and DYI centres, with major tenants including Kaufland and OBI. Residential holdings include about 9,200 apartments with 520,000 sqm in Leipzig, Hanover, Bremen, Essen, Dortmund and other mid-sized cities in North Rhine-Westphalia. Occupancy rates are over 95%.