Berlin – If the parliamentary manager of the SPD parliamentary group in the House of Representatives, Torsten Schneider, has its way, the state-owned companies should be able to finance the acquisition of almost 15,000 apartments from Vonovia and Deutsche Wohnen. “I only know hidden reserves and I am of the opinion that one billion could be withdrawn from the housing associations,” Schneider said on Wednesday in the main parliamentary committee responsible for finance. In fact, at least for one of the state-owned companies, Degewo, things are not looking rosy at all. This is shown by internal documents for a Degewo supervisory board meeting on June 24 this year.
With reference to the purchase of 4,381 apartments planned at the time, it states that this would put a “considerable” strain on the company’s ability to finance. The acquisition in 2021 would lead to the premature utilization of future investment potential and demand “an examination of the corporate planning in the following years”. The implementation of projects such as the € 275 million renovation of the residential complex on Schlangenbader Strasse in Wilmersdorf or the € 90 million renovation of the Schöneberger Terraces as well as expenditure on climate protection are “to be discussed”.
Degewo actually wants to grow by 1,500 apartments a year – through new construction and purchases. This is provided for in the medium-term economic plan, which was only presented to the Supervisory Board in December of last year. The shareholders of Degewo, i.e. the representatives of the Senate, want to achieve even more. According to the supervisory board documents, you have instructed the management board to draw up plans for the growth of 2,000 apartments a year.
If necessary, there should be subsidies from the state treasury
The sobering result: According to the document, neither the growth of 2,000 apartments per year nor the growth of 1,500 apartments per year is possible without capital subsidies from the state budget. “The long-term plans show considerable financing risks with an average annual growth of 2,000 and 1,500 residential units,” the papers say. In order to get by without subsidies, the growth target would have to be reduced to, for example, 1,100 apartments.
In the current information to the main committee, Finance Senator Kollatz points out that Howoge, Degewo and Berlinovo are acquiring the almost 15,000 apartments from Vonovia and Deutsche Wohnen without state subsidies. Despite the additional “borrowing”, i.e. new debts, “all new construction projects that have already been specifically planned could be implemented”, assures the Senator. But then comes the crucial sentence. “If necessary, a decision about the allocation of equity capital for further new building projects has to be made at a later point in time,” continues Kollatz.
In plain language: If necessary, Berlin will decide on an injection of money at a later date. The purchase of around 15,000 apartments would then, albeit belatedly, have costly consequences for the state treasury.