LEG, the Germany residential rental giant, is to sell up to 5,000 units in 2022 and expects to be a net seller following recent aggressive buying years.
The company updated the market via a set of encouraging H1 results on Wednesday, reporting it has continued ‘positive business development’ in the second quarter of the year.
Following strong external growth in previous years, the German listed company said it intended to sell up to 5,000 units at attractive prices in the current year. Around a third of these are from the Adler Group portfolio it acquired in 2021. It has also identified other units that no lo longer fit the company’s overall portfolio.
At the same time, LEG reiterated its announcement last week that it was cancelling a deal to buy a majority stake in Brack Capital Partners. That has led to LEG also cancelling its acquisition target for the current year. Accordingly, it expects to be a net seller, it stated.
The company also says it is taking steps to minimise heating costs faced by tenants amid rising prices.
Around one third of tenants contacted have accepted an offer to increase advance payments on a voluntary basis to cushion the spike in costs over several months.