“The old way of financing acquisitions, i.e. issuing new shares, is out of the question given the low share price,” said CEO Rolf Buch of the “Börsen-Zeitung” (Saturday). Partners are to be involved in the holdings in Sweden and Baden-Württemberg. The info memos are now being discussed with preselected candidates, but it is unclear whether and when a transaction will take place, Buch told the newspaper.
In the future, stocks could then be bought together with the partner. But first, Buch wants to test the cooperation model with existing portfolios. There are around 20,000 apartments in Baden-Württemberg and around 40,000 apartments in Sweden, Buch told the newspaper. So a good tenth of the total stock of 550,000 apartments.
According to Buch, investors can invest up to 49 percent in the sub-portfolios of Vonovia. The DAX group wants to keep the majority and continue to manage the stocks. Long-term capital collectors, such as pension funds, insurance companies and sovereign wealth funds, would be considered as partners. “We need someone who can continue to move large amounts of capital in the future,” said Buch. One or two allies would be wanted, not a bouquet of partners. This is about a long-term partnership.
With the planned acceptance of partners, Germany’s largest housing group is reacting to the slump in the share price and the sharp rise in interest rates. Vonovia shares have halved since the beginning of the year.
/jha/
FRANKFURT (dpa-AFX)
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