Germany’s largest real estate group, Vonovia, has announced its intention to merge with its subsidiary, Deutsche Wohnen.
This merger will be implemented through a domination and profit and loss transfer agreement, as outlined in German law.
Vonovia will offer shares in its company to the minority shareholders of Deutsche Wohnen in exchange for their shares. The listed housing landlord will provide an annual payment to Deutsche Wohnen for the duration of the agreement, the details of which are still being finalized.
Both Vonovia and Deutsche Wohnen will hold extraordinary shareholder meetings in December 2024 to vote on the agreement.
The exact details of the share exchange offer and annual compensation are yet to be finalized but will be determined in accordance with legal requirements.
Bochum-based Vonovia already holds 87% of Deutsche Wohnen, which focuses on the Berlin real estate market, after acquiring a significant portion of its shares in 2021, making it the largest-ever real estate merger in Europe
The merger with Deutsche Wohnen is expected to further consolidate Vonovia’s dominance in the German real estate landscape.
Vonovia focuses on renting, improving property values, selling, and developing properties. Its portfolio includes over 486,000 residential units in Germany, Sweden, and Austria. For its part, Deutsche Wohnen manages residential and commercial properties, including nursing homes.
