Fortress unit seeks bids for German flats-sources
FRANKFURT, Oct 2 (Reuters) - German real estate company Gagfah is seeking bids for the 38,000 flats it plans to sell in the city of Dresden by the end of the week, according to people with knowledge of the matter.
The flats for sale represent a quarter of the heavily indebted company's overall portfolio and have a book value of 1.8 billion euros ($2.32 billion).
The sale is the latest in a string of major real estate transactions in Germany this year, with demand and prices bolstered by investors seeking relatively safe assets amid Europe's sovereign debt crisis.
The bids are not binding and some 30 parties have taken a look at data on Gagfah unit Woba, which manages the flats, said the people who declined to be identified because the process is confidential.
Amongst the parties planning to bid is Deutsche Wohnen , the people said and, according to one source, also financial investors.
Leading the sale of Gagfah's portfolio is investment bank Leonardo, which also handled Landesbank LBBW's sale earlier this year of more than 20,000 flats to Patrizia Immobilien for 1.4 billion euros.
U.S. investor Fortress holds some 58 percent of Gagfah. All parties involved declined to comment. ($1 = 0.7749 euros)
(Reporting By Kathrin Jones and Peter Dinkloh; Editing by Louise Heavens)
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Keywords: FORTRESS FLATS/