Berlin (dpa) - The state of Berlin has bought back almost 6000 apartments from a real estate company. The municipal company Gewobag takes over it according to own data of Thursday evening of Ado Properties (Luxembourg).

These are former social housing stocks of the GSW company, which now belongs to the Deutsche Wohnen Group, said Berlin's city development senator Katrin Lompscher (left).

The purchase price of the apartments and 70 commercial units in two large contiguous neighborhoods in Berlin-Spandau and Berlin-Reinickendorf amount to 920 million euros, it said. The acquisition is planned for December 2019. There are no grants from the country for the acquisition.

"With the acquisition of nearly 6,000 residential units, we are closing today the largest purchase of municipalities in the history of Berlin," said Lompscher (left). "The mistakes that were made in the past with the sale of these stocks, we can not undo, but the tenants return the security they had lost through the interim privatization," said the Senator.

Ran Laufer, Chief Executive Officer of Ado Properties SA, said: "We are very pleased to conclude this agreement with Gewobag." The sale was in line with the Company's value creation strategy. This includes not only the acquisition of value-added real estate, but also the sale of objects, if the opportunity to provide conditions that are beneficial to 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 "KMA" was a symbol of the rent misery in German cities.

Message from Ado Properties

Gewobag announcement