Foncière Développement Logements (FDL) has signed an agreement to acquire a portfolio of 1,053 residential units, offering around 80,000 m2 in Berlin. The transaction price amounts to EUR 84 mln. The purchase will be 50% financed with own cash resources and 50% funded with bank debt.

The acquisition allows the company to diversify its German portfolio and boost results, FDL said.

The portfolio generates an annual rental income of EUR 5.4 mln, reflecting a gross yield of 6,6%. With the deal, FDL makes a first step in its strategy of geographic diversification aimed at taking advantage of opportunities available in new markets.

FDL, a French REIT with a portfolio valued at EUR 3.3 bn, is planning to expand its position in the residential market in France and in Germany. Further portfolio acquisitions in Berlin are currently being negotiated, the company added.