French REIT Fonciere Developpement Logements (FDL) has acquired a portfolio of 685 residential units in Berlin for EUR 54 mln, reflecting a price per m2 of EUR 994.

The purchase comes hard on the heels of last month's EUR 84 mln acquisition of a portfolio of 1,000 units from Austria's Conwert Immobilien Invest.

The latest deal involves 716 lots, including 685 residential units on 50,000 m2. The assets generate EUR 3.9 mln in gross rental income, representing a return on investment of 7.8%.

Located primarily in the Mitte quarter of the German capital, the portfolio has 'significant' leasing potential and good liquidity at resale. The deal will be 50%-financed by shareholders' equity, with the remainder being provided by a bank loan granted by one or more German banks.

FDL, which is active in Germany through its German subsidiary, Immeo Wohnen, said the latest operations open 'a new phase' in its German business, which has so far been focused on the Düsseldorf region. 'After completing these two deals by 1 August 2011, FDL will hold 1,643 residential units, or around 5% of its total assets by value in the German capital,' it said.