State of Berlin poised to buy €2.4b housing portfolio - report

Representatives of the State of Berlin have reportedly confirmed advanced negotiations to acquire a €2.4 bn residential portfolio in the city from housing groups Vonovia and Deutsche Wohnen.

German paper Berliner Morgenpost reported this week that the acquisition involving around 14,750 apartments is expected to be signed in mid-September.

The deal is being negotiated in connection with the ongoing merger discussions between Germany's largest listed housing groups. Deutsche Wohnen last week said that it is recommending its shareholders accept a renewed and final takeover bid by peer Vonovia.

Vonovia in August upped its bid for Deutsche Wohnen to €53 a share, after a previous €52 offer failed to secure the minimum 50% approval from the latter's shareholders. Vonovia already holds a roughly 30% stake in its takeover target.

The new offer is 'fair and adequate', Deutsche Wohnen said, adding that a tie-up between the two companies offers strategic benefits and added value for all stakeholders.

Read all about the merger in the September issue of PropertyEU Magazine


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