Germany’s 2 largest resi landlords set to merge

Vonovia and Deutsche Wohnen, under pressure to limit rent hikes, agree to $22B deal

National Weekend Edition /
May.May 29, 2021 12:00 PM
 Vonovia CEO Rolf Buch and Deutsche Wohnen CEO Michael Zahn at a press conference earlier this week regarding the merger. (Getty)

Vonovia CEO Rolf Buch and Deutsche Wohnen CEO Michael Zahn at a press conference earlier this week regarding the merger. (Getty)

Germany’s two largest residential property groups, under public pressure to limit rent hikes, are set to merge in a $22 billion deal.

Vonovia and Deutsche Wohnen have agreed to the compact, which would value their real estate holdings at a combined $110 billion, according to MarketWatch.

Vonovia would buy Deutsche Wohnen’s shares at 53.03 euros a share. That would be an 18 percent premium on Deutsche Wohnen’s Friday stock price. The price closed Monday at 52.06 euros a share.

The companies said that jointly managing their portfolios will have a projected cost savings of around $128 million a year. Vonovia CEO Rolf Buch said the merger would help the firms bring housing units in Berlin up to new energy efficiency standards, according to the report.

Both companies recently pledged to limit rent hikes to 1 percent in the German capital, where residents have pressed them to do so. Following a 2019 public campaign, Deutsche Wohnen said it would sell 20,000 units to the city.

Deutsche Wohnen CFO Philip Grosse said in 2019 that Berlin’s landmark rent freeze was a threat to the company’s finances, and that it would look to other markets to develop new properties.

Berlin’s rent control law was struck down in a German court earlier this year.

[MW] — Dennis Lynch 


Related Articles

arrow_forward_ios
Crow Holdings, Marcus Partners teaming up for luxury Westchester multifamily
Crow Holdings, Marcus Partners teaming up for luxury Westchester multifamily
Crow Holdings, Marcus Partners teaming up for luxury Westchester multifamily
Identity revealed of Saudis who amassed Florida real estate empire through shell companies
Identity revealed of Saudis who amassed Florida real estate empire through shell companies
Identity revealed of Saudis who amassed Florida real estate empire through shell companies
Kanye West and Antwerp, Belgium (Getty)
Kanye reportedly buys bachelor pad in Belgium
Kanye reportedly buys bachelor pad in Belgium
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
Credit Suisse Group partners with MARK on $1B-plus rental housing fund
Bluerock Residential CEO Robert Ramin Kamfar (Owler)
NY-based multifamily REIT Bluerock explores sale
NY-based multifamily REIT Bluerock explores sale
Swiss National Bank Vice President Fritz Zurbruegg (Getty)
Switzerland’s central bank warns of potential housing bubble as prices keep rising
Switzerland’s central bank warns of potential housing bubble as prices keep rising
50-58 East 3rd Street and Gaia Real Estate CEO Danny Fishman (LinkedIn)
Gaia gets back in the game with $50M East Village acquisition
Gaia gets back in the game with $50M East Village acquisition
Evergrande Group CEO Hui Ka Yan (Getty)
Property wing of world’s most indebted developer posts rare earnings loss
Property wing of world’s most indebted developer posts rare earnings loss
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...