TAG Immobilien AG. acquired 1,000 new residential units for EUR 39.5 million in December 2015. The portfolio, situated in Saxony, is primarily located in the cities of Chemnitz (70%) and Riesa close to Dresden (20%).

The portfolio, which was fully refurbished during the 1990's, comprises of an area of approx. 57,100 sqm and currently has a vacancy rate of approx. 3.8%.

The current annual net cold rent is EUR 3.36 million or EUR 5.05/sqm. The purchase price implies a multiple of 11.8x of the annual net cold rent, or a gross initial yield of 8.5%. The transaction is expected to close in the first quarter of 2016.