Berlin Senate Eyes Condos as Vonovia Licks Wounds on Failed Bid
Berlin Senate Eyes Condos as Vonovia Licks Wounds on Failed Bid
(Bloomberg) --
A senior Berlin lawmaker expects the city to buy apartments from Vonovia SE and Deutsche Wohnen SE even though a tie-up of Germany’s largest residential landlords is poised to fail.
“We continue to expect that both firms will approach us if and how the acquisition” of apartments from the city will go ahead, finance senator Matthias Kollatz told the German news agency DPA on Saturday.
To win political backing for the deal,, Deutsche Wohnen and Vonovia offered to sell about 20,000 apartments to the Berlin government, build some 13,000 new units, and limit rent increases.
Vonovia said Friday its $22 billion cash offer for Deutsche Wohnen was set to fail because of insufficient shareholder support, but left the door open for a renewed approach.
Vonovia “will carefully consider all options including the launch of another public offer,” it said.
“Time is on our side,” Vonovia Chief Executive Officer Rolf Buch told Handelsblatt in an interview Saturday, adding that while nothing can be ruled out, success also isn’t guaranteed.
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