Swiss real estate investor Corestate Capital has announced the acquisition of an 'ailing' portfolio of 2,300 apartments in Germany for EUR 77 mln. The portfolio comprises 137 properties located mainly in North Rhine-Westphalia. The vendors were unnamed foreign investors who acquired the assets during the peak of the German real estate cycle.

The financing of the portfolio is being provided by a German state bank.

This is the third transaction Corestate has carried out in 2010 where the borrower and financing bank recognised 'substantial deviations' from the business performance originally hoped for, Corestate said in a statement.

Separately, Corestate announced that Thomas Borer, the former Swiss Ambassador to Germany, has joined the firm's advisory board.