(Dec 24): Adler Group SA has agreed to sell its Cosmopolitan portfolio in North Rhine-Westphalia to investment firms Orange Capital Partners and One Investment Management.

The German landlord will dispose of an 89.9% stake in the properties, at a valuation of €423 million (RM1.98 billion), according to a statement late on Monday. The Cosmopolitan portfolio includes 6,788 rental units mainly across the cities of Duisburg, Düsseldorf, Essen, Oberhausen and Dortmund.

Adler’s management had previously flagged that it was marketing the portfolio. The company has been looking at asset disposals as a way to shore up cash following two debt restructurings. It is also focusing on slashing funding costs and it struck a deal last week to refinance €1.2 billion of first-lien debt at a cheaper rate. 

The transaction will generate around €215 million of net cash for Adler. The parties have also entered a put option allowing the sale of the remaining 10.1% stake at a later date.

Orange Capital Partners is a real estate and asset management firm based in Amsterdam. One Investment Management, backed by Abu Dhabi conglomerate Royal Group and Mubadala Investment Co is an alternative investment manager set up by SoftBank Vision Fund’s former co-chief executive officer Rajeev Misra.

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