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HOWOGE Wohnungsbaugesellschaft mbH: positive operating result with continued strategic growth - Seite 3

Growth and portfolio development

As of 31^st December 2023, HOWOGE had 76,392 apartments and 1,150 commercial units in its portfolio. Accordingly, there are more than 150,000 residents living in HOWOGE’s holdings. At 1.5 per cent as of 31^st December 2023, the vacancy rate - based on floor space - continued to be low. At EUR 6.42 per square metre, the annual average rent was significantly lower than market rents. More than 64 per cent of new lettings during 2023 went to persons with a certificate of eligibility for public housing.

In 2023, the number of staff at HOWOGE rose by approximately 13 per cent to 1,121. The main reason for this increase was the founding of HOWOGE Reinigung GmbH. This new company broadens the range of services provided by HOWOGE and, since July 2023, it has been responsible for cleaning work in part of the property portfolio. These cleaning services will be rolled out systematically to include the entire portfolio.

The growth in the company’s holdings of around 1,000 units in 2023 resulted from the completion of new-build projects. For example, HOWOGE completed just under 170 apartments right by Rummelsburg Bay in the borough of Lichtenberg. It also completed an integrated housing project with 120 apartments in Ohlauer Straße in Friedrichshain-Kreuzberg and 280 student apartments in Treptow-Köpenick.

Despite the difficult market environment, HOWOGE was able to start work on the construction of around 980 apartments in 2023. In the current financial year, the company plans to complete around 1,000 new-build apartments.

HOWOGE is also pursuing its growth strategy by acquiring portfolios of existing properties. Accordingly, HOWOGE 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 will take place as of 1^st January 2025.