Thousands of apartments in Berlin’s Spandau and Reinickendorf districts go back into the hands of the municipality. It is the largest buyback in the history of Berlin.
The state of Berlin bought back almost 6,000 apartments from a real estate company. The municipal company Gewobag takes it over from Ado Properties in Luxembourg. Berlin’s urban development senator Katrin Lompscher (left) said it was a former social housing stock of the company GSW, which now belongs to the Deutsche Wohnen Group.
Acquisition planned for December
The purchase price of the apartments and 70 commercial units in two large contiguous quarters in Berlin-Spandau and Berlin-Reinickendorf was 920 million euros, it said. The takeover is planned for December 2019. There are no state grants for the acquisition.
“With the purchase of almost 6,000 residential units, we are concluding the largest re-municipalization purchase in the history of Berlin,” said Lompscher (left). “We cannot reverse the mistakes that were made in the past with the sale of these properties, but we can give the tenants back the security that they had lost as a result of the privatization in the meantime,” said the senator.
Ran Laufer, Chief Executive Officer of Ado Properties S.A., said the company said: “We are very pleased that we were able to conclude this contract with Gewobag.” The sale corresponds to the company’s value creation strategy. This includes not only the purchase of value-enhancing properties, but also the sale of properties if the opportunity arises on terms that are advantageous for the company.
It was only in mid-July that Gewobag bought back around 670 apartments on Karl-Marx-Allee in Berlin. A purchase price was not mentioned. The conflict over the apartments in the “KMA” was a symbol of the rent shortage in major German cities.