Berlin buys 15,000 residences for two.46 billion euros from rental firms

BERLIN, September 17 (Reuters) – German residential rental firms Vonovia (VNAn.DE) and Deutsche Wohnen (DWNG.DE) promote almost 15,000 residences in Berlin for two.46 billion euros (2.90 billion euros). {dollars}), the businesses stated on Friday.

The acquisition comes 9 days earlier than elections within the German capital, the place housing shortages and quickly rising costs have change into a scorching subject. A consultative referendum on the expropriation of the 2 housing firms is to be organized in parallel with the municipal elections.

Deutsche Wohnen would promote 10,700 residences and 4,250 would belong to Vonovia’s portfolio.

Vonovia, Germany’s largest residential rental firm, is within the strategy of buying its smaller competitor, making a housing juggernaut with some 550,000 residences value over 80 billion euros.

With a purpose to achieve political help for the deal introduced in Might, the 2 firms have pledged to restrict regular lease will increase in Berlin and have supplied to promote round 20,000 residences to town for at the very least € 2 billion. . L2N2NB1I4

Nevertheless, a gaggle behind the referendum initiative criticized the proposals and reiterated its opposition to such a transaction on Friday.

“We’re in precept in favor of the takeover of the residences by the general public, however not via stolen provides at speculative costs,” Moheb Shafaquar stated in an announcement.

However Vonovia’s Rolf Buch stated the value was proper.

“With this sale of housing inventory in Berlin to municipal housing firms, we’re fulfilling a central promise within the Berlin Senate,” he stated. “We’re promoting the residences at a good worth.”

($ 1 = 0.8488 euros)

Reporting by Mattias Inverardi Enhancing by Tomasz Janowski

Our requirements: Thomson Reuters Belief Ideas.

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