Terra Firma in German real estate swoop

In its second transaction in Germany in a month, the London-based buyout firm has acquired 4,500 apartments for €225m.

German utility company RWE has agreed to sell 4,500 German apartment units to London-headquartered Terra Firma Capital Partners for €225 million ($300 million), according to a report from Reuters.

The transaction was completed through Terra Firma’s German operation Deutsche Annington Immobilien GmbH, according to the report.

The deal follows Terra Firma’s acquisition last month of German motorway service station group Tank & Rast for €1.035 billion.

The transaction is the latest in a series of German real estate deals by private equity firms. Two weeks ago, US private equity house The Blackstone Group acquired 30,000 rental properties from WCM for €1.39 billion.

In July, New-York headquartered Fortress Investment Group beat off interest from Terra Firma to acquire property management group Gafgah for €3.5 billion.

In May, the Berlin government agreed to sell property association GSW Group to a consortium of investors led by Goldman Sachs and Cerberus Group for €1.97 billion.

And in a non private equity transaction last week, ThyssenKrupp, the German steel and engineering group, announced that it had sold off its residential property portfolio, which consists of 48,000 flats for €2.1 billion.

Terra Firma has stepped up investment activity recently. Aside from its German transactions, the firm has also acquired two UK cinema chains, paying around £400 million (€596 million; $720 million) for Odeon and €270 million (£180 million; $325 million) for the UK and Europe network of UCI Cinemas in August.