Group’s Business Development

We are continuing with our corporate strategy. In the Rental segment, we have stepped up our modernization activities and our new construction measures as planned. In the Value-add Business segment (previously known as “Extension”), we have forged ahead with the continued expansion of our housing-related services. In the Sales segment, we continued to pursue our strategy of selective sales.

The first half of 2017 developed very successfully for Vonovia on the whole. In the second quarter of 2017, we were able to follow up the good start to the fiscal year, and to expand our leading market position further. The takeover and integration of the conwert real estate portfolio increased our own residential portfolio to 352,815 apartments (H1 2016: 340,442).

Key Events

The first quarter of 2017 saw the first-time consolidation of conwert, with 208 companies, as a result of the completion of the conwert takeover. The creation of the necessary exchange shares increased our total equity by € 89.7 million in net terms. The first-time consolidation resulted in goodwill of € 212.9 million. The first-time consolidation in the first quarter of 2017 allowed us to reach our first key milestone in the integration of conwert and to lay the foundation for the targeted management of the acquired portfolio.

Two EMTN tranches of € 500 million each were drawn down in January (coupons; 0.75 % and 1.75 %). The subsequent repayment of the last major former GAGFAH financing arrangement, “Taurus”, in February 2017 meant that we repaid a volume of around € 1 billion.

In the second quarter of 2017, we stepped up our efforts to achieve the organizational integration of conwert into Vonovia’s organization. Furthermore, a squeeze-out process regarding the remaining conwert shares was initiated by Vonovia SE.

A resolution on the merger of GAGFAH S.A. with Vonovia SE was passed on June 27, 2017. This means that we have performed a key task which will create a more efficient legal structure within the Vonovia Group.

On June 30, 2017, we performed a valuation of our real estate portfolio due to the current market momentum. As far as our major locations are concerned, this valuation revealed an increase of € 1,164.7 million in the value of the residential real estate portfolio.

In the second quarter of 2017, we also completed a contract regarding the acquisition of PROIMMO AG’s portfolio with approximately 1,000 residential units. The acquisition will take place in the third quarter of 2017.