Berliners vote to expropriate large landlords in non-binding referendum

Deutsche Wohnen SE

27/09/2021 08:52

By Riham Alkousaa and Matthias Inverardi
    BERLIN, Sept 27 (Reuters) - A majority of voters in Berlin
wants city hall to expropriate major landlords such as Vonovia
 VNAn.DE  and Deutsche Wohnen  DWNG.DE  to help reduce rents in
the German capital, provisional referendum results showed on
Monday.
    Around 56% cast a ballot in favour of the non-binding
initiative, compared to 39% against, Berlin government said on
its website following Sunday's vote, which was held alongside
elections for the city government and the national parliament. 
    The results come as Vonovia, the largest German residential
rental company, said it had reached the 50% threshold needed to
buy smaller rival Deutsche Wohnen, creating a housing behemoth
with some 550,000 apartments worth more than 80 billion euros
($93.7 billion).  urn:newsml:reuters.com:*:nS8N2OX04Q
    Public anger has been growing in Berlin over tenant rights
and affordable housing, which were a major issue in the election
campaign in the traditionally left-leaning German capital.
    The group that initiated the referendum declared victory and
called on the city senate to draft a law to expropriate and
socialize large housing groups. Campaigners hope the city will
take control of some 240,000 apartments. 
    "Ignoring the referendum would be a political scandal. We
will not give up until the socialization of housing groups is
implemented," Kalle Kunkel, spokesman for the initiative, said
in a statement.
    
    'MANIFOLD CHALLENGES' 
    Responding to the referendum result, Vonovia CEO Rolf Buch
said in a statement: "Expropriations do not solve the manifold
challenges on the Berlin housing market."
    He called for more cooperation from all players in the
Berlin housing market to find more constructive solutions.    
    Earlier this month, Vonovia and Deutsche Wohnen announced a
plan to sell almost 15,000 apartments to Berlin for 2.46 billion
euros as part of a bid to win political support for their
merger.  urn:newsml:reuters.com:*:nL8N2QJ244
    The Social Democrats (SPD) retained control of Berlin in
Sunday's election, according to provisional results on Monday,
meaning that their candidate Franziska Giffey will become the
first female mayor of the German capital.  urn:newsml:reuters.com:*:nL8N2QT0HS
    The SPD also narrowly won Germany's federal election with
25.7% of the vote, ending 16 years of conservative-led rule
under Angela Merkel, but tough coalition talks lie ahead.
 urn:newsml:reuters.com:*:nL8N2QT0HW
    
($1 = 0.8537 euros)

 (Reporting by Riham Alkousaa and Mattias Inverardi
Editing by Gareth Jones)
 ((Riham.Alkousaa@thomsonreuters.com;))