Listed German property firm TAG Immobilien has acquired a residential complex with 420 units in Chemnitz, Saxony, Germany from a private investor for EUR 24 mln. The deal is being funded with a capital increase in the amount of EUR 7 mln as well as a bank loan of just over EUR 16 mln.

Completed in 1980, the asset underwent a renovation programme in the years 2001 to 2003. The scheme offers 32,000 m2 of space, and generates an annual rent of EUR 1.8 mln a year. The overall occupancy rate is over 96%.

The acquisition further expands TAG's portfolio, which will comprise more than 30,700 residential units once the transaction is complete.

'Like our other purchases this year, this acquisition will have a positive impact on our cash flow, profitability and NAV per share,' said TAG Immobilien's CEO Rolf Elgeti.