Limited availability of housing. - The cartel authority approves the acquisition of a flat in Berlin.
In Berlin, two state-owned firms can now acquire significant real estate holdings from Vonovia, a real estate company. The Federal Cartel Office, an antitrust regulator, has deemed this potential acquisition permissible. They disclosed this news on Monday. "At present, approximately 1.7 million rental apartments are found in Berlin, with the state owning about 22% of them," noted Federal Cartel Office President Andreas Mundt. "The state of Berlin's proposal to procure around 4500 apartments, primarily in the district of Lichtenberg, from Vonovia is compatible with competition regulations."
The state-run firm would only slightly broaden its control over the Berlin rental market through this purchase. As of the end of 2022, it was reported that the state owned approximately 375,000 rental units, which accounted for roughly 22% of the total 1.7 million rental properties in Berlin.
Howoge Plans to Acquire 4500 Apartments
The housing development firm Howoge has its sights set on obtaining 100% of Prima Wohnbauten Privatisierungs-Management GmbH shares. If this acquisition is completed, Howoge's influence on the Berlin rental market would increase only slightly, around 22.4%. As per the Senate Department for Urban Development, Housing, and City Affairs' information, the targeted properties are found in the districts of Lichtenberg and Treptow-Köpenick, amounting to roughly 4500 apartments.
Furthermore, Howoge has been given the green light to acquire 100% of the city development company Buch's shares by the Federal Cartel Office. Buch owns a 40-hectare undeveloped plot in Berlin-Buch's Pankow district, where as many as 1200 apartments could potentially be constructed. For both projects, it is reported that the total acquisition cost is approximately 700 million euros.
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Andreas Mundt, the President of the Federal Cartel Office, stated that Berlin owns around 22% of the city's 1.7 million rental apartments. The Federal Cartel Office approved the acquisition of 4500 apartments from Vonovia by a state-owned firm in Lichtenberg, considering it compliant with competition regulations. Howoge aims to acquire 100% of Prima Wohnbauten Privatisierungs-Management GmbH shares, which would slightly increase their influence on the Berlin rental market. The Federal Cartel Office also allowed Howoge to acquire 100% of Buch's shares, owning a 40-hectare undeveloped plot in Berlin-Buch for potential apartment construction. The total acquisition cost for both projects is approximately 700 million euros. This series of acquisitions and approvals in Berlin's real estate market serves to address the limited availability of housing.
