New threat to Berlin landlords – an article in todays FT (NB paywall) alerted us to a potential new issue for companies investing in Berlin residential property. After the good news from the rejection of rent controls (Mietendeckel) we now have a proposal to expropriate properties owned by large landlords in the city.
A petition, which has been signed by almost 360,000 people calls for a referendum on the issue to be put to voters on September 26. It aims to compulsorily purchase 240,000 apartments owned by deutsche Wohnen, Vonovia (which is in the process of acquiring Deutsche Wohnen) and Akelius & Co. The action would only apply to entities owning more than 3,000 apartments. Phoenix Spree Deutschland owned 2,555 at the end of 2020 and so should not be affected.
There is plenty more information here
For the investment companies sector, one trust which has long backed these companies is Capital Gearing Trust. Whether it would be financially impacted may depend on the level of compensation.
Our guess is that even if the resolution passes, it will face many legal challenges.