Vonovia to sell stake in a residential portfolio to Apollo

28 Apr 2023 CW Team

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.

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..