Germany’s eighth largest residential real estate transaction in 2009

WGF Westfälische Grundbesitz und Finanzverwaltung AG has acquired a portfolio containing 1.879 flats and 95 commercial units from the Swiss Corestate Group. The real estate is predominantly located in North Rhine-Westphalia. The purchase agreement with a volume of about €100 m has now been signed.

Herewith, WGF AG supports its WGF 6.35 % Mortgage Bond which was issued beginning of October with a volume of €100 m. Based on the current assumptions, the Creditreform Rating Agentur expects the mortgage bond to receive a BBB– rating (investment grade). This statement is based on the review of the calculation model, which took place before the sale was finalised.

The total area of the portfolio is 139,000 sq m and has a 98 % occupancy rate. This is the eighth largest transaction that the German residential real estate market has seen in 2009.

Pino Sergio, CEO and founder of WGF Finanzgruppe: „With this strategic enhancement of our portfolio we have reached a milestone in our still young company history. Not only have we shown that we are market leader in regards to the issuing of mortgage bonds but also have confirmed our competence in real estate as our core business.“

Ralph Winter, founder of Corestate Capital: „WGF AG has in the last years developed into one of the most important and successful market participants. The negotiations were fair and professional. On both sides, we are pleased about the successful business transaction.“

CB Richard Ellis, an international real estate consulting firm, was responsible for the appraisal of the portfolio.