Degewo buys 2,280 homes and industrial units in Berlin

Berlin-based communal housing company Degewo has acquired a portfolio of 2,259 homes and 21 industrial units in the German capital.

The properties in the south of the city were bought from a private housing company for an undisclosed sum. Analysts estimated the total value at between €150 mln and €200 mln, Thomas Daily reported.

Around 930 of the residential properties are in the suburb of Lichtenrade, with another 640 in Marienfelde. The portfolio also includes 865 private parking spaces.

Degewo director Christoph Beck said: 'We are expanding our stock with newbuild properties and acquisitions, such as this one. This enables us to meet the terms of our contract with the regional government to increase the number of communal homes. That is good for the tenants and good for Berlin as it will ensure fair long-term rents.'

Degewo manages around 75,000 residential properties in Berlin, of which it owns 65,000, and has set a target of building 3,500 new homes in the city by 2020.