Siemens sells residential real estate holdings to German real estate consortium

Siemens sells residential real estate holdings to German real estate consortium

Munich, Germany, Siemens has sold its residential real estate holdings to a consortium comprising Wohnbau GmbH (Bonn, Germany), the GBW Gruppe (Munich, Germany) and the Volkswohnung GmbH (Karlsruhe, Germany). In the sale, the interests of all tenants were amply taken into account through rights to determine occupancy and protections against unwarranted eviction. There are also limits on rent increases and resale. The parties have agreed not to reveal the purchase price. The transaction is subject to approval by the antitrust authority.

The Siemens unit responsible for the company’s residential real estate holdings, Siemens-Wohnungsgesellschaft, informed its tenants in July 2008 that Siemens was considering the sale of its residential properties. “Social responsibility has been a tradition at Siemens since its founding and is firmly anchored in our values. That’s why safeguarding tenants’ rights was our top priority in selecting a purchaser,” said Siegfried Russwurm, Siemens Chief Human Resources Officer. “The purchasing consortium’s agreement to preserve the residential holdings and its contractual concept for the tenants were the decisive factors in our accepting the bid,” said Russwurm.

Siemens owned a total of some 4,000 dwellings, of which about 2,300 were in Erlangen, Germany, 1,100 in Munich, Germany, and 530 in Karlsruhe and Bruchsal, Germany. Siemens has secured rights to determine occupancy of these dwellings and of an additional 650 dwellings. The company has also secured rights for the tenants. For example, protections against unwarranted eviction were negotiated for all current tenants. Limits have also been placed on rent increases and resale.

Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 430,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and income from continuing operations of €5.9 billion (IFRS). Further information is available on the Internet at: www.siemens.com.