Squire Patton Boggs has advised Deutsche Wohnen, one of the leading publicly listed residential property companies in Europe, on its agreement with the State of Berlin on the sale of selected properties from the company's portfolio. The purchase price is approximately €1.65 billion. The agreement, which Deutsche Wohnen has concluded with the three state companies HOWOGE Wohnungsbaugesellschaft mbH, degewo AG and Berlinovo Immobilien Gesellschaft mbH, comprises the sale of nearly 10,700 residential units and more than 200 commercial units in Berlin. The transaction is subject to clearance with the German merger control authority (Bundeskartellamt).
Led by Corporate partner Kai Mertens, the Squire Patton Boggs team in Berlin advising Deutsche Wohen included Fabio Borggreve, Alina Navarro, Uwe Martin, and Corinna Toelle.
The units acquired by the three state companies from Deutsche Wohnen by this agreement are spread across Berlin's urban area and are located in the districts of Charlottenburg-Wilmersdorf (81 units), Friedrichshain-Kreuzberg (1. 600), Lichtenberg (956), Marzahn-Hellersdorf (1,271), Mitte (224), Reinickendorf (1,073), Spandau (3,399), Steglitz-Zehlendorf (1,270) and Tempelhof-Schöneberg (1,028).
The sale of the apartments was announced along with the announcement of a business combination between Deutsche Wohnen and Vonovia, one of Germany’s leading residential real estate companies, on May 24, 2021, and is part of the “Future and Social Housing Pact” (Zukunfts- und Sozialpakt Wohnen) for Berlin presented by the companies and the Senate. As part of this transaction a total of around 20,000 apartments have been offered for sale to the state of Berlin by Deutsche Wohnen and Vonovia. An agreement was reached for approximately 14,750 residential and 450 commercial units.
“We are delighted to support our client Deutsche Wohnen on a significant new agreement that increases the state-owned portfolio of residential neighbourhoods in Berlin,” said Kai Mertens. “The transaction underscores Deutsche Wohnen’s support to the state of Berlin in its efforts to strengthen its municipal portfolio.”