Germany’s Vonovia sells real estate properties for €560 million

 

BERLIN – Vonovia, Germany’s largest housing group, said on Thursday it was raising money through the sale of five real estate portfolios.

The properties with 1,350 flats in total were purchased for around €560 million ($620 million) by CBRE Investment Management. The properties are located in Frankfurt, Berlin and Munich.
Vonovia said the book value of the properties, plus the estimated costs related to some unfinished construction on them, amounts to about €600 million.

The closing of the sale is expected during the second and third quarters.

Vonovia expects a cash inflow after taxes and transaction costs of around €535 million.

Last month, Vonovia announced that it was selling just under 30% of its Südewo residential portfolio to Apollo Global Management for $1 billion.
Vonovia is looking to lower its debt load amid rising interest rates.

After years of expansion, the company intends to sell around 66,000 apartments with a total value of around €13 billion