Austrian listed property company Conwert Immobilien Invest has acquired a portfolio of 1,689 apartments and 160 commercial units part of the former Baubecon portfolio from a joint venture of Italy's Prelios and Deutsche Bank's RREEF investment arm.

Although the transaction volume was not disclosed, the company said the price reflects a yield of 7.9% based on full occupancy.

'This operation reflects conwert's new strategic orientation aimed at expanding its residential real estate portfolio in Germany,' the company said, adding that it intends to further strengthen its presence in the German market. In April, the company divested a vast portfolio concentrated in the Ruhr region of Germany to FDL, the residential arm of Foncière des Régions, for EUR 84 mln, reflecting a yield of 6.6%.

The acquired portfolio has a value-added profile and features a vacancy rate of 8.6%. The assets are mostly located in the western part of Berlin.

Law firm Goerg and German asset manager der alt+kelber Immobiliengruppe advised the buyer on the deal. Marccus Partners Selas and Sidley Austin acted for the sellers.

Prelios, formerly known as Pirelli RE, and RREEF acquired the Baubecon portfolio in July 2007 from US private equity group Cerberus for EUR 1.7 bn. RREEF held a 60% stake while Pirelli controlled the remaining 40% interest and managed the assets. The portfolio, comprising some 27,000 flats, are mostly located in German cities including Berlin, Hanover and Magdeburg.