(Bloomberg) -- German residential landlord Vonovia SE said it expects to generate around €1.8 billion ($2 billion) selling shares of its Deutsche Wohnen SE unit, part of its nursing home business and several development projects, exceeding its target of reaching €3 billion in disposals this year.
Apollo Global Management Inc. will invest €1 billion in a company it’s set up with Vonovia that will hold 20% of the shares in Deutsche Wohnen, the landlord said in a statement on Wednesday.
It’s the third deal Apollo and Vonovia have agreed to since the landlord began efforts to cut debt in 2022. Last year, Apollo pledged investments worth €2 billion for minority stakes in two of Vonovia’s residential portfolios. Vonovia said it expects to raise €4 billion in liquidity from sales for the remainder of 2024, similar to the previous year’s level.
The Deutsche Wohnen announcement comes two weeks after Vonovia said it would enter discussions to conclude a so-called domination and profit and loss transfer agreement for the unit, offering a way out for minority investors trying to sell their shares.
Besides the Apollo investment, the landlord also said Wednesday that it raised some €800 million from selling 11 development properties to a fund set up by HIH Invest Real Estate, and more than two dozen nursing homes in greater Berlin to a fund managed by care sector specialists Civitas Investment Management.
Vonovia took over local rival Deutsche Wohnen in 2021, driving up its loan-to-value ratio just as central banks began hiking interest rates, and forcing it to put at least €13 billion of assets on the block to protect its balance sheet.
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