German real estate giants seek to reassure Berliners over $22 bln merger
Germany’s two biggest listed landlords Vonovia (VNAn.DE) and Deutsche Wohnen have agreed to join forces in a 18 billion-euro ($22 billion) deal that risks stoking tensions over affordable housing in the run-up to general elections in September.
The country’s biggest merger this year, which will create a European real estate giant with 550,000 apartments, faces criticism in Berlin, where tenant rights and rising rents are a contentious issue.
Analysts say the transaction – the largest European real estate deal on record, Refinitiv data show, and Vonovia’s third attempt to swallow Deutsche Wohnen (DWNG.DE) – should encounter few antitrust concerns in a fragmented market. read more
To try to secure political support, the two companies pledged to limit regular rent increases to 1% per year in Berlin for the next three years and to inflation-adjusted increases for the following two years.
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