French SIIC Foncière Développement Logements (FDL) has signed two sale agreements with two German institutional investors for the divestment of 627 housing units located in the cities of Essen and Düsseldorf, in the Ruhr region. The transaction volume amounted to a total of EUR 42 mln, representing a profit to the appraisal value of the assets at year-end 2010.

'These transactions demonstrate the high liquidity of the assets held by FDL in Germany and the sustained interest of investors in the residential sector,' the company said in a statement. The deal is due to be completed by end September.

These divestments are part of the company's value-creation strategy, aimed at taking advantage of the growth opportunities offered by new investments. Last week, FDL clinched the purchase of 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.

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.