Expectations of a rebound in Germany’s moribund property market suffered a setback yesterday as it emerged that US private equity group Cerberus was to sell a large portfolio of flats in the country. Financial Times

The planned sale of 20,000 former trade union flats just three years after Cerberus bought the portfolio for €1bn ($1.3bn, £670m), suggests large investors are losing patience at the poor performance of the market.

'Cerberus is disappointed by the investment,' a source said.

Cerberus cancelled its original plan to float the portfolio, which is held by Hanover-based vehicle Baubecon.

Goldman Sachs, Blackstone, Terra Firma, Morgan Stanley and Fortress have spent more than about €20bn buying more than 600,000 properties in Germany in recent years.

The property subsidiary of Italian company Pirelli is said to be in a good position to buy the portfolio from Cerberus.

'We are looking at several portfolios in Germany and Baubecon is one of them. Talks are continuing,' said Wolfgang Weinschrod, Pirelli RE Deutschland’s chief executive.