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Vonovia: Difference between revisions
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== Disposals == | == Disposals == | ||
September 6, 2023: According to insiders, Vonovia has started preparations for the partial sale of 18,000 apartments belonging to its subsidiary, Buwog. Buwog bought the apartments in 2014 for 900 million euros<ref>https://time.news/private-equity-interested-in-northern-german-vonovia-portfolio/</ref>. It is estimated that Vonovia could get around 3 billion euros from the sale<ref>https://www.wikifolio.com/de/de/highlightdetail?wikifoliosymbol=wfspecial2&commentid=8d98a0d9-02d1-4d8e-b79d-cb343735876a&utm_campaign=smartsinglestockbox&utm_content=wf-name&utm_source=finanzennet&utm_medium=comment&t-isin=de000a1ml7j1&contentitemid=6c842295-5424-11ee-92b9-f57d2721bdd5</ref>. | |||
May 10, 2023: Vonovia offered a series of sweeteners to have Apollo purchase its 30% of portfolio. Apollo will get around 70% of the dividends and will not pay asset-management fees. This will take the discount to 30% of the book value, way above the 5% discount announced by the company when closing the deal. The revelation casts a shadow on the deal that suggested that pricing was firming and confidence was returning to the German property market. -Chief Executive Officer Rolf Buch said during the earnings call that Apollo was getting higher dividends from the portfolio because it "has no minority protection rights in the deal." He added that the sale included a call option that will allow Vonovia to buy the assets back at a price that caps the private equity firm’s return, meaning it could claw the properties back at a discount in future. Vonovia also sold properties to CBRE Investment Management for €535 million after taxes and transaction costs, reflecting a discount of 11%<ref>https://www.bloomberg.com/news/articles/2023-05-10/vonovia-offered-hidden-sweeteners-to-get-1-billion-apollo-deal</ref>. | May 10, 2023: Vonovia offered a series of sweeteners to have Apollo purchase its 30% of portfolio. Apollo will get around 70% of the dividends and will not pay asset-management fees. This will take the discount to 30% of the book value, way above the 5% discount announced by the company when closing the deal. The revelation casts a shadow on the deal that suggested that pricing was firming and confidence was returning to the German property market. -Chief Executive Officer Rolf Buch said during the earnings call that Apollo was getting higher dividends from the portfolio because it "has no minority protection rights in the deal." He added that the sale included a call option that will allow Vonovia to buy the assets back at a price that caps the private equity firm’s return, meaning it could claw the properties back at a discount in future. Vonovia also sold properties to CBRE Investment Management for €535 million after taxes and transaction costs, reflecting a discount of 11%<ref>https://www.bloomberg.com/news/articles/2023-05-10/vonovia-offered-hidden-sweeteners-to-get-1-billion-apollo-deal</ref>. | ||