EQS-News

HOWOGE acquires around 4,500 apartments and secures land reserves for building public housing

EQS-News: HOWOGE Wohnungsbaugesellschaft mit beschränkter Haftung / Key word(s): Acquisition/Real Estate HOWOGE acquires around 4,500 apartments and secures land reserves for building public housing 24.04.2024 / 13:42 CET/CEST The issuer is solely responsible for the content of this announcement. NOT FOR PUBLICATION, DISTRIBUTION OR FORWARDING, EITHER DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION OR PUBLICATION WOULD BE UNLAWFUL.

 

HOWOGE acquires around 4,500 apartments and secures land reserves for building public housing

 

Berlin, 24 April 2024. HOWOGE Wohnungsbaugesellschaft mbH is purchasing PRIMA Wohnbauten Privatisierungs-Management GmbH (PRIMA) with 4,495 apartments in the Berlin boroughs of Lichtenberg and Treptow-Köpenick from Vonovia SE. Together with Berlinovo Immobilien Gesellschaft mbH, it is also purchasing from Vonovia SE the company Stadtentwicklungsgesellschaft Buch mbH (SEG Buch). These strategic acquisitions at a purchase price of EUR 700 million constitute an overall package. The transfer of shares in the companies is planned to take place as of 1^st January 2025.

 

With the exception of a residential complex in Adlershof with 95 residential units, PRIMA’s portfolio is located entirely in the borough of Lichtenberg in close proximity to HOWOGE holdings. In particular, 2,350 apartments are located in Friedrichsfelde, 1,223 apartments in Fennpfuhl and 647 apartments in Lichtenberg itself. For the most part, these are refurbished buildings with a pre-fabricated design that are de facto fully let. As HOWOGE managing director Ulrich Schiller explains, “PRIMA’s apartments are an excellent match for HOWOGE. The location, construction method and condition of the properties are very much comparable to our holdings and fit seamlessly into our property management model. With an average rent of EUR 7.04 per square metre, they are also eminently suitable as public housing.” At significantly below one per cent, the vacancy rate of the properties is extremely low. The PRIMA portfolio also contains two commercial units, 47 other units and 873 parking places. HOWOGE is also purchasing the glass fibre network and solar cell systems that belong to the properties.