Germany’s publicly listed residential property companies Vonovia and Deutsche Wohnen are jointly selling almost 15,000 residential and commercial units to the State of Berlin for €2.46 billion ($2.90 billion), the companies said on Friday.
The companies and the State of Berlin have reached an agreements on the sale of selected properties from their portfolio to the municipal housing companies berlinovo, degewo and HOWOGE.
Deutsche Wohnen will sell almost 10,700 residential units and 200 commercial units for around €1.65 billion.
Around 4,250 of residential and commercial units will come from Vonovia’s portfolio for €811 million.
Michael Zahn, CEO of Deutsche Wohnen: “With the sale, we are reaffirming our role as a trustworthy partner for the State of Berlin. The current transaction continues the constructive cooperation after we have already sold holdings to state-owned housing companies several times in the past.”
Rolf Buch, CEO of Vonovia: “With the sale of these Berlin housing stocks to the municipal housing companies, we are redeeming a central commitment to the Berlin Senate from the ‘Future and Social Pact Housing’. We will sell the apartments at a fair price. We are a reliable partner to politics and society and we make a lasting contribution to solutions on the Berlin housing market.”
The sale of the apartments was announced with the announcement of a partnership with Vonovia on May 24, 2021 and is part of the “Housing Future and Social Pact” for Berlin presented by the companies and the Senate. In this context, Deutsche Wohnen and Vonovia offered the State of Berlin a total of around 20,000 apartments for sale. An agreement was reached for around 14,750 residential and 450 commercial units.