Two industry sizes, a takeover sum of 18 billion euros and a housing stock of 557,000 apartments – 155,000 of them in Berlin alone. If you go by the numbers, the planned merger between the housing companies Vonovia and Deutsche Wohnen sounds like a noticeable change for the German housing market.
The antitrust authorities still have to approve the merger. If you give the green light, Vonovia and Deutsche Wohnen would have a joint market capitalization of around 45 billion euros, the value of the properties alone would be around 90 billion euros. This would make the newly created group the largest private housing company in Europe.
The largest housing company
It is true that the companies dominate their sector, but together both providers will only own around two percent of the housing market in Germany in the future. In the Deutsche Wohnen stronghold of Berlin, too, the housing stock of the two companies is significantly higher – around seven percent of all apartments – but other property owners also have a considerable number of apartments in their stock. These are the private housing associations with the largest housing stocks in Germany:
@IMAGO / Achille Abboud
# 6 Adler Real Estate
Adler Real Estate AG describes itself as a “major provider of apartments in Germany”. According to the company, it prefers to buy residential complexes with more than 100 residential units. The Berlin-based company, founded in 1880, owns around 60,000 residential units.
# 5 TAG real estate
TAG Immobilien AG owns and manages around 85,000 residential units. The company is listed in the MDax. It has branches in Berlin, Hamburg, Rostock, Leipzig, Dresden, Düsseldorf, Salzgitter, Döbeln, Erfurt, Gera and Jena. TAG Immobilien earns EUR 322.5 million in rental income annually.
@IMAGO / Michael Kneffel
# 4 Vivawest living
Vivawest Wohnen says of itself that it is one of the largest companies in the industry in North Rhine-Westphalia. Vivawest owns 120,000 residential units. In 2017, the real estate company recorded sales of EUR 887.8 million.
@IMAGO / Jochen Tack
# 3 LEG real estate
LEG Immobilen AG is headquartered in Düsseldorf, owns around 145,000 residential units and made a turnover of 809 million euros in 2019. The name LEG stands for Landesentwicklungsgesellschaft NRW mbH. In 1987 the company was privatized.
@IMAGO / serial light
# 2 German living
Deutsche Wohnen owns 157,500 residential units, making it the second largest company on the German housing market. In Berlin, the housing company is even considered the largest private landlord. Again and again criticism arose against the supremacy, such as the initiative “expropriate Deutsche Wohnen und Co.”. She is committed to socializing real estate owned by companies in Berlin for billions in compensation. Deutsche Wohnen will now merge with Vonovia.
# 1 Vonovia
With more than 355,000 residential units, Vonovia is by far the largest housing company in Germany. Vonovia has already tried to buy Deutsche Wohnen once. The project failed in 2016 – now it should work. The two will thus merge to form the largest provider in Europe.