OTHER ASSETS INCLUDING LIQUID SECURITIES, NON-CORE PROJECTS AND OTHER INVESTMENTS
This segment includes various investments, which is the combination of strategic long-term and short-term investments. The different strategies can be applied across various investment time frames to either focus on maximising shareholder value or to create liquid investment profiles. Aggregate has historically utilised this segment efficiently to hold stakes in some of the largest real estate companies in Germany and the German-speaking region. The segment currently holds an impressive development portfolio of eleven real estate projects, located in the major cities of Berlin, Hamburg, Frankfurt and Dusseldorf, as short-term investments now for sale. The segment appraised real estate value is approximately EUR 1bn, the assets are all located in key German cities.
This segment also holds a c.6% stake in Adler Group SA ("Adler Group"), one of the largest residential real estate players in Germany. Adler Group has significant footprint in the Top 7 German cities and also provides a strong platform for growth through its build-to-hold landbank.
Adler Group is an integrated residential platform with unique organic growth pipeline, secured at attractive land values with an experienced development team and platform. It has c.20% reversionary potential across the yielding residential portfolio delivering sector leading LFL rental growth of +4.3% and structurally low vacancy of 3.8%. There is significant NTA value uplift potential from the development pipeline. Adler Group has an ESG rating of 10.7, certifying a low ESG risk, ranking the company within the top 5% rated real estate companies under global coverage.
In December 2021, Adler Group, achieved an transformational milestone with the signing of a portfolio disposal of c.15,500 units generating net cash proceeds of EUR 800m, alongside the sale of 7% stake in BCP to LEG, while granting LEG an irrevocable tender commitment for all its remaining BCP shares until 30 September 2022 totalling EUR 850m. Disposals at a premium to its current book value re-iterates the strong fundamental quality of Adler’s portfolio and demand for residential real estate assets across Germany.