Bundled sales

In a package sale, multiple properties-often condominiums or apartment buildings-are transferred to a single buyer in a single transaction. This form of sale is particularly common among institutional investors, housing associations, and high-net-worth private investors. The price per unit is generally lower than the individual sale price, as the buyer purchases a larger volume and expects corresponding volume discounts.

How It Works and Contract Structure

A package sale can be structured either as an asset deal (direct transfer of the properties) or as a share deal (sale of the shares in a property company). In an asset deal, separate land registry entries are made for each property; in a share deal, only the ownership structure changes. The choice of structure has significant tax implications, particularly regarding real estate transfer tax and sales tax. Buyers and sellers therefore regularly seek guidance from tax advisors and attorneys.

The due diligence phase is particularly time-consuming in a portfolio sale: The buyer examines all properties in the portfolio for defects, legal encumbrances, lease agreement conditions, and renovation needs. A complete and well-organized collection of documents on the seller’s part-land registry extracts, current tenant lists, utility bills, maintenance records-significantly accelerates this process and strengthens the negotiating position.

Pricing and Discount Compared to Individual Sales

The so-called package discount ranges between 5% and 20% of the total individual market value, depending on market conditions, quality, and the portfolio’s location. Factors such as vacancy rates, maintenance backlogs, tenant creditworthiness, and regional demand significantly influence the discount. Sellers must weigh whether the time savings and transaction security of a package sale justify the reduction in proceeds.

In a high-demand market like Nuremberg, the package discount is currently generally lower than in structurally weaker regions. Institutional investors often pay prices close to those of individual sales for well-managed residential portfolios in attractive neighborhoods, provided the package size and documentation are in order. The quality of the portfolio is decisive-a heterogeneous collection of problem properties incurs significantly larger discounts than a homogeneous portfolio in comparable locations.

Opportunities and Risks for Sellers

Bulk sales enable the rapid liquidation of extensive portfolios without the need for time-consuming individual marketing. At the same time, sellers forgo the opportunity to achieve higher total proceeds through selective individual sales. Careful due diligence preparation is crucial: complete documentation (land registry extracts, tenant lists, maintenance contracts) accelerates the process and strengthens the negotiating position.

For communities of heirs or shareholders who wish to part ways after years of joint ownership, a bulk sale is often the simplest and fastest solution. The alternative-marketing each unit individually-can take months or years and requires continuous coordination efforts from all parties involved.

Practical Tip for Owners in Nuremberg and Franconia

In the Nuremberg metropolitan region, institutional investors regularly seek residential portfolios in sought-after neighborhoods such as Gostenhof, St. Johannis, or Maxfeld. Anyone who owns multiple units and aims for a swift sale should have the portfolio professionally appraised and prepare the documentation in a consolidated format. We analyze your portfolio and determine whether a bulk sale or individual sales would be more financially advantageous for you.

Our analysis takes into account tenant creditworthiness, vacancy rates, renovation needs, and the current demand from institutional investors. This provides you with a well-founded basis for decision-making-not a one-size-fits-all recommendation.

Frequently Asked Questions

What is the difference between an asset deal and a share deal in a bulk sale?

In an asset deal, the properties are transferred directly; real estate transfer tax is levied on the purchase price. In a share deal, the buyer acquires shares in a company that holds the properties-under certain conditions, this can avoid or reduce real estate transfer tax. Both options require legal and tax advice.

How is the package price determined?

The starting point is the total individual market value of all properties, from which a package discount is deducted. The amount depends on location, condition, occupancy rate, and market liquidity. An independent appraisal provides transparency and prevents unnecessary negotiation discounts.

Does a package sale make sense even with only two or three properties?

Yes, even smaller portfolios can be sold en bloc. Starting with two to three units, transaction efficiency and standardized due diligence favor this form of sale-provided the buyer’s market is sufficiently active, which is currently the case in Nuremberg and the Franconia region.

How long does a portfolio sale typically take?

A portfolio sale generally takes longer than an individual sale-it often takes three to six months from the initial negotiations to the notary appointment. The buyer’s due diligence phase is the most time-consuming part. Having complete documentation on hand can significantly speed up the process.

Buyer Profiles for Portfolio Sales

Not every institutional investor is the right buyer for every portfolio sale. It is worth knowing the typical buyer groups and their different requirements:

Housing associations and municipal owners seek portfolios with a long-term stable tenant base and socially acceptable rent levels. They value location, social structure, and condition, but are less yield-driven than private investors.

Closed-end real estate funds and family offices prefer homogeneous portfolios in good locations with a transparent rental history. These buyers have their own due diligence teams and work professionally and quickly-provided the quality of the documentation is up to par.

Private investors with multiple units are less common in package sales but are certainly viable for smaller portfolios (two to five units). They often make decisions more personally and quickly than institutional buyers but have more limited financing resources.

Reaching the right buyer group is crucial for a successful bulk sale. We have an active network of institutional and semi-professional investors in the Nuremberg metropolitan region and can place your portfolio in a targeted and discreet manner-without public marketing, if that aligns with your interests.

Tax Considerations for Portfolio Sales

Portfolio sales have significant tax implications that must be considered early on. For individuals, capital gains are tax-exempt if the properties have been held for more than ten years (speculation period under Section 23 of the German Income Tax Act). Different rules apply to corporations-tax exemption is not automatically granted in these cases.

Under certain circumstances, a share deal offers advantages regarding real estate transfer tax: If less than 90% of a company’s shares are transferred, real estate transfer tax is often not applicable. The requirements and holding periods for this have recently been tightened by the Real Estate Transfer Tax Act; up-to-date tax advice is essential. We work closely with experienced tax advisors specializing in real estate transactions and can facilitate connections to suitable tax advisory firms.

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