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HOWOGE acquires around 4,500 apartments and secures land reserves for building public housing - Seite 2

 

Together with Berlinovo Immobilien Gesellschaft mbH, HOWOGE is also purchasing SEG Buch, whereby its share is 74 per cent. The object of purchase is a plot of land in Berlin-Buch that forms part of the designated planning area Buch-Am Sandhaus. The overall plot has an area of 40 hectares, of which 26 hectares are a buffer area and around seven hectares future building land. The remaining area is grassland. As Ulrich Schiller points out, “HOWOGE is already the owner of numerous plots of land in the area of the new residential neighbourhood that is planned. With the acquisition of these new plots of land, the neighbourhood can be developed almost entirely by public sector entities.”

 

HOWOGE will finance the acquisition with existing liquidity and a balanced and efficiently designed mix of secured and unsecured financial instruments. “The sound capital structure of HOWOGE and balanced financial instruments enable us to react to purchase opportunities like these and, at the same time, to actively invest in new builds and our existing holdings,” says HOWOGE managing director Katharina Greis. “With the purchase of almost 4,500 apartments, HOWOGE is strengthening its position as a public housing company and meeting its social responsibilities.”

 

Prior to the purchase, there were on-site viewings, and a careful external and internal due diligence process was conducted in which economic, financial, legal and technical issues were examined. EY and Greenberg Traurig assisted with the transaction in a consultative capacity.

 

 

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is one of the six publicly owned housing companies belonging to the State of Berlin. With a housing portfolio of 76,400 apartments (as of 31^st December 2023), the company is one of the largest landlords in Germany. In the medium to long term, HOWOGE intends to expand its housing portfolio, particularly through new builds, to around 100,000 apartments. As part of the Berlin school building campaign, HOWOGE is also taking on for the State of Berlin the refurbishment of existing schools and the building of new ones.