China Xiaokang.com September 26th Lao Ma The German Industrial Union (IG Bau) publicly expressed support for the partial nationalization of two largest housing groups in Germany, Vonovia and LEG. As it enters, the state should influence the rental market. “The federal government should acquire large listed real estate companies to gain a voice in the long-term rental price policy of the real estate group,” Chairman Robert Feiger told the Funke Media Group newspaper on Monday.
Germany rental prices have been rising
Germany reported that the holding target must be 25% of the shares plus a key minority. Specifically, Feige named two real estate heavyweights Vonovia and LEG.
"In this way, the federal government can influence important strategic decisions of the company's supervisory board," said the union boss. “So the state will send a signal—after multiple privatizations—it intervenes in the real estate market again.”
Feger said that the state government can “have a say in everything important: including the rental strategy.” Specifically, it is to curb future rents. "Because now is the time for real estate groups to no longer only look at profitability, but should also assume their social responsibilities." The important thing is to "pull out the teeth of the 'rental sharks' - at least the sharpest ones."
