Vonovia SE sells 4,500 apartments to Berlin

Vonovia SE sells 4,500 apartments to Berlin

The renowned German residential real estate group Vonovia SE has successfully completed a significant property sale to the state of Berlin. This transaction includes the sale of 4,500 apartments and results in total proceeds of 700 million euros. As one of the largest residential real estate groups in Germany, Vonovia SE has taken a decisive step to optimize its portfolio and reduce debt.

The sale of the housing stock in the Berlin district of Lichtenberg to state-owned housing companies marks a strategic step by the company. CEO Rolf Buch has his sights firmly set on the goal of reducing corporate debt through the targeted sale of real estate. Given the current dynamics and challenges in the real estate market, Vonovia strives for efficiency and a sustainable portfolio strategy.

The transaction mainly includes prefabricated buildings that were handed over to municipal housing companies at book value. This move is of particular interest to investors as it shows that reasonable prices can be achieved even in a challenging market environment. Valuations of Vonovia's real estate portfolio have recently recorded a depreciation of approximately 14.4 percent since June 2022, highlighting the need for portfolio management.

The proceeds from the sale of the housing stock support Vonovia in achieving its financial goals. With the planned total value of three billion euros in property sales this year, the company's focus remains on selling properties at reasonable prices. The transaction with Berlin is expected to be completed by the end of 2024 and will contribute to further strengthening Vonovia's financial position.