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Rent: Berlin buys back nearly 6,000 apartments from real estate group

2019-09-27T06:04:33.434Z

It is the largest re-municipalization in the history of Berlin, says city development Senator Katrin Lompscher. Now there will be more security for the tenants.



The state of Berlin has bought back nearly 6,000 apartments from a real estate company. The municipal company Gewobag takes over it according to own data of the Luxembourg real estate company Ado Properties. According to Berlin's city development Senator Katrin Lompscher (left), these are former social housing stocks of GSW, which now belongs to the Deutsche Wohnen Group.

Apartments and 70 commercial units are being bought in two large contiguous quarters in Berlin-Spandau and Berlin-Reinickendorf. The purchase price is therefore 920 million euros, the acquisition is scheduled for December 2019. There are no grants from the country for the acquisition.

"With the acquisition of just under 6,000 residential units, we conclude today the largest re-municipalization purchase in the history of Berlin," said Lompscher. "We can not undo the mistakes that were made in the past with the sale of these stocks, but give the tenants the security they had lost through the interim privatization," said the senator.

Sales correspond to the value creation strategy

Ran Laufer, Chief Executive Officer of Ado Properties SA, said, "We are very pleased to conclude this agreement with Gewobag," according to a statement from his company. The sale complies with the value creation strategy of the company. This includes not only the acquisition of value-added real estate, but also the sale of objects, if the opportunity arises on conditions that are advantageous for the company.

As recently as mid-July, Gewobag had bought back around 670 apartments on Berlin's Karl-Marx-Allee. A purchase price was not mentioned. The conflict over the apartments in the Karl-Marx-Allee was considered a symbol of the Mietmisere in major German cities.

Source: zeit

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