Real estate group: Vonovia presents figures – profits are increasing continuously

Following the announcement of a new takeover offer for competitor Deutsche Wohnen, Germany’s largest real estate group Vonovia is today presenting figures for the second quarter of the current financial year.

Thanks to increasing rental income and acquisitions, Vonovia’s profits are continuously increasing. For the first three months of the year, the group had already reported an increase of 17 percent. CEO Rolf Buch had spoken of a “stable and predictable business”.

The Bochum residents benefit from the fact that they are increasingly concentrating their housing stock in cities with growing populations. The takeover of number two on the German housing market would therefore fit in well with Vonovia boss Buch’s concept. Deutsche Wohnen is the largest private landlord in the capital: Around 114,000 of the more than 155,000 apartments are in the greater Berlin area.

Vonovia failed in July with its offer at the minimum acceptance threshold for the takeover of 50 percent. As a result, the group announced that it would make another attempt, which is now the third. Vonovia wants to increase the takeover price for Deutsche Wohnen by one euro to 53 euros per share.

Buch had already ridden his first attack on the competitor in 2016, at that time against his will and without success. At the second attempt this year, he was able to get the board of directors and supervisory board of Deutsche Wohnen on board, but not all of the hedge funds involved in the company. Their speculation on a higher price made Buch responsible for its failure also in the second attempt. Too few shares were offered.

Vonovia received the green light from the financial supervisory authority Bafin yesterday for the renewed takeover offer to the shareholders of Deutsche Wohnen. Vonovia announced that Bafin had granted the required exemption from the one-year blocking period for a new offer.