A $1.17 billion Berlin-based real estate portfolio was agreed to be bought by German landlord, Deutsche Wohnen.
"With this acquisition, we are demonstrating once again that we are able to realise existing potentials efficiently and thus generate value for our shareholders," said Deutsche Wohnen Chief Executive, Michael Zahn, in a separate statement.
According to the report of Reuters, the real estate portfolio "Harald" is from Patrizia Immobilien and consists of 13,500 residential units.
The acquisition of the 'Harald' portfolio may complicate the $14 billion take-over bid for Deutsche Wohnen by its competitor Vonovia SE.
In the report by the Wall Street Journal, Vonovia announced last October that it would bid a mix of cash and shares for Deutsche Wohnen under the provision that the target company would avoid "significant asset purchases." While Vonovia didn't specify further, Deutsche Wohnen indicated it wouldn't compromise Vonovia's bid.
Deutsche Wohnen repeatedly rejects the offer from Vonovia SE, saying that it undervalues the company and may dilute the quality of its real estate portfolio.
A Vonovia spokeswoman said on Friday that, "it had taken note of the announcement, adding the group will hold its extraordinary general meeting on Monday as planned, where it will seek shareholder approval for the Deutsche Wohnen takeover."
Deutsche Wohnen is one of the leading listed residential companies in Germany. Its operational focus is on managing and developing its residential property portfolio. The company is listed in the MDAX of the German Stock Exchange and is also included in the major indices, EPRA/NAREIT and GPR 100.
At present, Deutsche Wohnen is based in Frankfurt/Main with a head office in Berlin. Assistance and support is provided to the tenants at the local Service Points. As Deutsche Wohnen grows further, the network of Service Points is being continuously extended. Their portfolio currently comprises 149,100 units in total, of which 147,000 are residential units and 2,100 are commercial properties.
