LEG Immobilien SE has successfully acquired a majority stake in Brack Capital Properties N.V. (BCP), increasing its ownership from 35.52% to 88.20% as part of a deal with Adler Group concluded in November 2024. This acquisition brings an additional 9,100 residential units under LEG’s management, with a significant regional focus on North Rhine-Westphalia, Lower Saxony, Bremen, and Leipzig. The transaction, valued at €219 million, aligns with LEG’s commitment to providing affordable housing in Germany. Over 90% of the acquired BCP portfolio is located in LEG’s core regions, with North Rhine-Westphalia accounting for nearly half of the units. The acquisition also marks LEG’s entry into Leipzig, an emerging growth market, and expands its presence into eastern Germany with units in Leipzig and Magdeburg. This strategic move underscores LEG’s goal to reinforce its footprint in key locations while upholding its mission of delivering affordable housing solutions. BCP’s portfolio aligns with LEG’s focus on affordable housing, offering an average rent of €7.29 per square meter. While slightly above LEG’s current portfolio average rent of €6.78 per square meter, the pricing reflects the concentration of BCP’s properties in growth markets. The portfolio boasts a high occupancy rate of 96.4%, further enhancing its value proposition. LEG has assured tenants that their lease agreements will remain unchanged, in compliance with legal requirements. Starting in mid-January, tenants will receive welcome letters detailing new points of contact, services, and procedures. LEG will assume full management responsibilities for the properties in February 2025 at the earliest. Local on-site management teams and regional offices will continue to provide operational support and maintain direct communication with tenants and stakeholders. The acquisition represents LEG’s cautious transition from portfolio optimization to expansion, following a period of internal adjustments. The move builds on LEG’s initial purchase of Adler’s portfolio and a 36% stake in BCP in 2021, positioning the company for sustainable growth at a fair purchase price. “With this transaction, we are continuing the strategic expansion we initiated in 2021 with the Adler portfolio and our initial stake in BCP,” said Lars von Lackum, CEO of LEG Immobilien SE. “We are excited to welcome new customers and expand into additional locations in Germany. While continuing to execute our sales program, we remain vigilant for attractive opportunities that align with our mission of offering high-quality, affordable housing.” LEG remains committed to fostering strong relationships with local authorities and stakeholders in its newly acquired regions. The company will implement localized points of contact to support tenants and communities, ensuring a seamless integration of the new properties into its operations. The acquisition includes: • 9,100 residential units and additional commercial spaces in BCP’s portfolio. • Focused regions: North Rhine-Westphalia, Lower Saxony, Bremen, Leipzig, and Magdeburg. • Continued emphasis on sustainable and affordable housing. Source: LEG Immobilien Photo: Lars von Lackum, CEO of LEG Immobilien SE