TAG Immobilien expands in Poland with €565m acquisition

TAG Immobilien (TAG), through its Polish subsidiary Vantage Development, has agreed to acquire 5,322 rental units from R4R Poland (Resi4Rent) for PLN 2.4 bn (€565 mln). 

TAG's project in Posen

The deal, subject to antitrust approval in Poland, is expected to close by the end of Q3 or during Q4 2025.
The acquired portfolio includes 18 properties across Poland's six largest cities: Warsaw, Wrocław, Poznań, Kraków, Łódź, and Gdańsk. The properties have a total usable area of approximately 177,700 m² and a high occupancy rate of around 98%. These modern apartments were mostly constructed within the last three years.
TAG will finance the purchase using its existing cash reserves of €870 mln and a bridge facility of up to €600 mln provided by Bank of America and Société Générale. TAG intends to refinance the facility through capital market instruments.
Preliminary calculations project that the acquired rental units will generate a net actual rent (NAR) of approximately PLN 175–180 mln (€41–43 mln), a net rental income (NRI) of approximately PLN 163–167 mln (€38–40 mln), and a contribution to adjusted EBITDA of approximately PLN 140–145 mln (€32–34 mln) in 2026, after full lease-up and synergy realization. This translates to an expected gross initial NAR yield of around 7.5% and an expected NRI yield of around 6.8%.
Following this acquisition, TAG's Polish Gross Asset Value (GAV) is projected to increase to approximately €2.0 bn.  TAG’s core market, Germany, has a GAV of €5.3 bn, based on approximately 83,000 apartments.
Claudia Hoyer, COO and Co-CEO of TAG, stated, "With this acquisition, we will achieve our strategic goal of having about 10,000 rental apartments in Poland by the end of 2028, significantly earlier than planned. We will therefore very soon have a high-quality, high-yield portfolio of new-build properties in the six largest cities of a country with excellent fundamentals, both in terms of the overall economy and the housing market. At the same time, we continue to see growth opportunities in Poland. We will therefore be able to continue expanding our rental portfolio step by step over the next few years, focusing on the most attractive projects."
Rafał Mazurczak, COO of Echo Investment, commented: “In line with Echo Group’s profitable growth strategy, we are divesting selected mature assets in the living segment while continuing to focus on new projects and the interests of our stakeholders. Importantly, we remain fully committed to growing our accommodation rental business and developing the remaining Resi4Rent portfolio of approximately. 4,500 units. Of these, 3,800 units are expected to be operational already in 2026, underscoring the strong performance and long-term potential of the platform.” 
Tomasz Kosieradzki, director at Griffin Capital Partners, added: “At Griffin, we believed for a long time in the attractiveness of the living sector, creating the first and market leading institutional PBSA and PRS players in the Polish markets. We view the Polish accommodation rental market as one of the most compelling investment opportunities, driven by a persistent housing shortage and strong demand for professional, convenient, and flexible living solutions. We are very pleased with the performance and achievements of Resi4Rent over the past few years. Our efforts have clearly demonstrated the sector’s potential, the strong performance of Resi4Rent underscores the resilience of the accommodation rental market, backed by ongoing urbanization and evolving consumer preferences.”
While Vantage Development takes over this significant portion of the portfolio, Echo Investment and Griffin Capital Partners, the joint owners of Resi4Rent, will continue to develop and expand the remaining portfolio.
Resi4Rent currently manages about 10,000 units in various stages of development. Post-acquisition, the platform will still have a substantial portfolio of operating, under-construction, and planned units.
Echo Investment, primarily owned by Wing, will use the capital generated from this transaction to lower its debt, invest in future developments, and provide returns to its shareholders.