Berlin to buy 15,000 flats for 2.46 bln euros from rental firms (updated)

Deutsche Wohnen SE

17/09/2021 11:53

(Adds reaction, detail)
    BERLIN, Sept 17 (Reuters) - German residential rental
companies Vonovia  VNAn.DE  and Deutsche Wohnen  DWNG.DE  are
selling almost 15,000 apartments to Berlin for 2.46 billion
euros ($2.90 billion), the companies said on Friday.
    The acquisition comes nine days before elections in the
German capital, where housing shortages and rapidly rising
prices have become a hot issue. An advisory referendum on
expropriating the two housing companies is due to be held in
parallel with the city election.
    Deutsche Wohnen would be selling 10,700 apartments and 4,250
would come from Vonovia's portfolio.
    Vonovia, the largest German residential rental company is in
the process of acquiring its smaller competitor, creating a
housing behemoth with some 550,000 apartments worth more than 80
billion euros.
    In an effort to win political support for the deal announced
in May, the two companies have pledged to limit regular rent
increases in Berlin and offered to sell about 20,000 apartments
to the city for at least 2 billion euros.  L2N2NB1I4 
    However, a group behind the referendum initiative, has
criticised the proposals and reiterated its opposition to such a
transaction on Friday.
    "We are in principle in favour of taking over the apartments
by the public, but not through backdoor deals at speculative
prices," Moheb Shafaquar said in a statement.
    But Vonovia's Rolf Buch said the price was fair.
    "With this sale of housing stock in Berlin to the municipal
housing companies, we are fulfilling a central promise to the
Berlin Senate," he said. "We are selling the apartments at a
fair price."
    
($1 = 0.8488 euros)

 (Reporting by Mattias Inverardi
Editing by Tomasz Janowski)
 ((thomas.escritt@thomsonreuters.com; @tomescritt; +49 30 2201
33579;))