German and French affordable housing specialists Vonovia and SNI Group have agreed to join forces in a bid to create a pan-European housing development model.
The agreement to pool their expertise and market intelligence will allow the companies to learn from each other's business practises and explore joint growth and investment opportunities, according to their chief executives.
'SNI Group and Vonovia are leaders in their respective markets, both companies have developed successful and resilient business models for customers who look for attractive and affordable housing,' commented Rolf Buch, CEO of Vonovia.
Bochum-based Vonovia currently owns and manages around 355,000 residential units across Germany, with a portfolio worth around €30.8 bn.
SNI Group is Caisse des Dépôts' public interest real estate subsidiary and France's biggest social landlord with a portfolio of 348,000 units of housing throughout France, including 262,000 units of social and low-cost social housing, and 86,000 units of intermediate housing.
'While our markets show differences, we both believe there is a wide variety of topics that could be explored, in order to learn from each other, identify areas of knowledge transfer and improve each other's business model further. Many industries profit from a Franco-German cooperation. We are proud to take part in that tradition in the field of affordable housing.'
'I am delighted that we have signed this agreement which paves the way for a pan-European housing development model while continuing the momentum of the Group's first European operations in partnership with the European Investment Bank, and with the Council of Europe Development Bank to develop emergency accommodation facilities for refugees,' said André Yché, chairman of the management board, SNI Group.
Buch and Yché, signed a memorandum of understanding that frames the future cooperation, including a commitment to pool information, benchmark company processes, identify potential energy saving solutions and residential services to drive growth, as well as discussing opportunities for cross-border investments.
The companies also said they aimed to help shape a European public interest housing model.
'Vonovia has developed the leading operational platform to provide the full range of residential real estate services in-house by way of standardized and industrialised processes,' said Buch. 'I believe this partnership will offer us the opportunity to learn how other leaders in similar markets operate their models. We are at a very initial stage to explore what factors determine success in other markets and gain insight.'
'This partnership between German and French leaders of housing within their respective homelands is a clear signal that both companies consider that housing, because of its influence with citizens' daily life, access to jobs capabilities and personal development, cannot be considered anymore from a specific national approach,' added Yché. 'It must be thought on the European scale; just as we Europeans proceeded with culture, scientific research and technology.'
