Goldman Sachs to Buy 93,000 German Apartments for $1.2 Bn

Now THAT is buy-to-let.

I wonder what the rental yield on the portfolio is, I’m guessing it’s slightly better than a Dublin 2 bed.

In other news, heard talk of big writedowns at Goldmans

is that $13,000 per apartment? (1.2 bill)
or $36,500 per apartment (3.4 bill)

anyone know how much of a reduction that is on the normal prices?

The Germans are going to regret that sale BIG TIME. Goldman Sachs will own enough of the housing stock to be able to manipulate the market.
They will gradually raise rents and they might even mothball some apartments, in order to create an artificial shortage. Then after the market rent has gone up to a nice high level, drip feed them back onto the market at the higher rent level.

And watch Goldman Sachs sweat those assets. Minimal expenditure on maintenance, cold calling elderly tenants to “discuss their options” regarding “upgrading” their lease etc etc.

Giving control of your entire housing stock to a ruthless outfit like Goldman is so naive.
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Remainder deleted by ARW - why throw in all the misogynistic stuff?*

I don’t think they’ll need to do that.

This looks like a play on Germany opening its job market to Eastern Europeans, a process which has already begun.

workpermit.com/news/2007-11- … grants.htm

By shifting ownership to private sector, the government gets to plead market forces while the middle classes who own property smile at the capital appreciation.

It has a certain familiar ring to it.

Goldman already owns tens of thousands of flats in Germany, as does Morgan Stanley, and some hedge funds are involved too. The original plan was to buy these massive portfolios from the utility companies and big industrials and then sell them off to the tenants, but the tenants weren’t interested in buying. If whizzbangs price of $36,500 per apartment is correct then the rent doesn’t need to be very high to make this deal very attractive. It’s not like they’re buying a negative carry investment and relying on capital appreciation, this is the kind of property investing that actually makes some kind of sense to me.

Yeah, it makes sense for the investors, but no sense at all for Germany.

Goldman buys the apartments off a cash strapped state outfit which is short of cash because it has to bail out a bank which was going under because it bought a lot of toxic debt from Goldman who, having made the sale shorted the CDOs and made a killing when the credit crunch hit.

Nice.

i’m surprised goldman beat brendan investments to this one. :smiley:

I wonder how this compares to the deals our Local Councillors struck on behalf of the Irish Tax payer. During their tireless efforts to hunt down every last drop of value for money they could find!