The monopoly on the housing market continues: On Thursday of this week it was announced that Germany’s largest real estate group Vonovia had secured over 60 percent of Germany’s second largest real estate group, Deutsche Wohnen, which means that nothing stands in the way of the largest takeover in German real estate history. With around 550,000 apartments, the combined company is now also at the forefront across Europe.
On yesterday, Friday, Vonovia again confirmed that it was considering joining the Adler Group, currently number six in Germany with around 70,000 residential units. When he started, Vonovia took advantage of a speculative attack by British investor Fraser Perring, which caused Adler’s share price to plummet to around 10 euros on Wednesday. Vonovia now has an option to acquire a total of 13 percent in Adler for 14 euros per share and can think about it for 18 months.
Given that the Adler Group has borrowed heavily in the past, it will likely have to sell a large part of its housing portfolio in order to reduce its debt level. With Vonovia a buyer could be ready: As the “Handelsblatt” reports from insider circles of the group, the substance of Adler’s housing stock is rated “at the present time as very good”. If a purchase is made, Vonovia’s total portfolio could increase to over 600,000 residential units – for comparison: Germany’s second largest real estate group LEG has only 145,000 apartments. And another comparison: In 2013 Vonovia was worth 3.8 billion euros on the stock exchange – currently it is 30 billion euros. The concentration on the real estate market is increasing; The big ones keep growing, not only in Germany, they are gaining power – and whoever has power has an influence on politics and market prices. Because they are only set in Monopoly.
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