German residential property investor Vonovia has completed just over a third of its €3 billion of planned disposals by the end of the year.
In addition to the latest deal with a Berlin housing corporation (€700 million), the company sold a further €400 million, at book value.
“The bottom in terms of valuation is practically within reach,” said chairman Rolf Buch. “We expect to complete the stabilisation phase this year.”
By 2025 at the latest, the company wants to focus on increasing the revenues. In the first quarter, Vonovia’s rent roll increased by 1.5% to €592.9 million. Profits came in at €335.5 million compared with a €2.1 billion loss during the first quarter of last year. However, that loss was caused by a €3.6 billion writedown on the value of its real estate portfolio.