Vonovia to sell stake in a residential portfolio to Apollo
Real Estate

Vonovia to sell stake in a residential portfolio to Apollo

The largest real estate company in Germany announced on Thursday that Vonovia had reached an agreement to sell a small portion of its Suedewo residential property to American investor Apollo for 1 billion euros ($1.10 billion).

The deal could send a message to the faltering German real estate market, where there haven't been many significant sales in recent months due to high interest rates and declining home values. The deal values the Suedewo portfolio in Baden-Wuerttemberg in the southwest at 3.3 billion euros, which is less than 5% less than Suedewo's fair value as of December 31, according to Vonovia.

The German company, which will continue to manage the portfolio of more than 21,000 residential units, acknowledged that it was under no duty to exercise the long-term buy-back option, which has an internal rate of return (IRR) of 6.95% to 8.30%, including dividends.

With the money received, Vonovia will produce around half of the 2 billion euros in free cash flow from asset sales that were anticipated.

"Not the big bang, and sold 5% below recent fair value, but should be viewed as a first step in the right direction," a local dealer said in response to the news.

At 07:33 GMT, Vonovia's shares climbed 2.6% to the top of Germany's blue chip index. The group planned to sell 13 billion euro worth of properties during the summer in order to ensure access to finance in the middle of the real estate market turmoil.

The largest real estate company in Germany announced on Thursday that Vonovia had reached an agreement to sell a small portion of its Suedewo residential property to American investor Apollo for 1 billion euros ($1.10 billion). The deal could send a message to the faltering German real estate market, where there haven't been many significant sales in recent months due to high interest rates and declining home values. The deal values the Suedewo portfolio in Baden-Wuerttemberg in the southwest at 3.3 billion euros, which is less than 5% less than Suedewo's fair value as of December 31, according to Vonovia. The German company, which will continue to manage the portfolio of more than 21,000 residential units, acknowledged that it was under no duty to exercise the long-term buy-back option, which has an internal rate of return (IRR) of 6.95% to 8.30%, including dividends. With the money received, Vonovia will produce around half of the 2 billion euros in free cash flow from asset sales that were anticipated. Not the big bang, and sold 5% below recent fair value, but should be viewed as a first step in the right direction, a local dealer said in response to the news. At 07:33 GMT, Vonovia's shares climbed 2.6% to the top of Germany's blue chip index. The group planned to sell 13 billion euro worth of properties during the summer in order to ensure access to finance in the middle of the real estate market turmoil.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?