Germany’s largest residential real estate group raises money by selling a stake in a real estate portfolio.
(Photo: dpa)
Dusseldorf Around a year after the announcement that it would part with real estate worth billions in view of the turnaround in interest rates, the Dax group Vonovia has completed its first major deal. Germany’s largest real estate group sold a minority stake in its “Südewo” residential portfolio in Baden-Württemberg to US financial investor Apollo for one billion euros, the company announced on Wednesday.
The transaction gives the group more financial leeway and could also have a signal effect on the troubled German real estate market, on which there have recently been hardly any major deals due to high interest rates and falling real estate prices.
Potential buyers preferred to wait and see. In view of the uncertainty about the future development of interest rates and real estate prices, they have so far preferred to hold back on acquisitions.
Slight discount on the portfolio
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