The Landericus Limited Board today announces the profitable sale of its investment in Landericus Holdings Sarl, a property investment vehicle focused on German private rent sector (‘PRS’) residential properties, to Heitman LLC (“Heitman”), a global real estate investment management firm on behalf of Heitman European Residential Investment Partners (“HERIP”).
The sale was supported by the Board of Your Lifespace Limited, principle shareholder in the fund, to take advantage of cyclical strength in the German PRS market. The strategy has been further boosted by the favourable Euro / Sterling exchange rate movements.
Heitman European Residential Investment Partners (“HERIP”) is a closed end, co-mingled fund with the strategy of aggregating and managing a portfolio of for-rent residential properties in Western Europe.
Mark Rogers, Director of Your Lifespace Limited and Chief Executive of Circle Housing Group said, “We support the decision to dispose of Landericus Limited’s investment in Germany. This has been a very successful investment since 2008 which has delivered consistent annual returns but as a commercial investment it was always the intention to exit over the investment lifecycle. We look forward to reinvesting received dividends to build more affordable homes for our core customers in the UK.”
Andrew McKeon, Director of Landericus Limited, said, "The Portfolio has been worked by the manager on behalf of the Board and we felt the time was right to capitalise on the increased Asset Value rather than expand the Portfolio in the current competitive market."
Gordon Black, Senior Managing Director for Heitman, said: “We continue to believe accumulating positions in residential real estate situated in high barrier to entry markets is warranted given broader macro-economic conditions in demographically attractive cities in Germany. The properties are extremely well let and will provide strong income and further growth potential through the prudent use of additional capital to implement various value creation strategies at the asset level.”