Title: Sale of 13 Hamburg Nursing Homes by German Housing
Deutsche Wohnen, a subsidiary of Vonovia SE, sold its nursing company Pflegen & Wohnen Hamburg GmbH (P&W) to Hamburg Municipal Holding Company (HGV) in 2023. The deal, worth around 380 million euros, includes 13 nursing home locations, approximately 2,400 nursing places, and around 2,000 employees.
The city of Hamburg welcomed this move, stating it provides an opportunity to become an independent actor in the area of stationary care again. This transition comes after some controversy surrounding the city's sale of several nursing facilities to Deutsche Wohnen in 2006 and 2007.
Vonovia CEO Rolf Buch, as the main shareholder of Deutsche Wohnen, sees this as a responsible decision by the company, ensuring it divests its self-managed nursing facilities while securing a responsible new owner for P&W. The high quality of care operations is set to continue under HGV's ownership.
The sale is part of Vonovia's strategy to reduce its billion-dollar debt, initiated during the real estate crisis. Buch now looks to growth opportunities following the resolution of this debt issue.
For Hamburg, this acquisition comes with multiple benefits. The city can manage its financial responsibilities without taking on additional debt, while also securing the long-term supply of elderly care services. This move may also provide opportunities for future expansion or improvement in elderly care services, aligning with the city's broader health and social care strategies.
This strategic move results in a positive outcome for both parties. Deutsche Wohnen secures a responsible new owner for its assets, allowing it to focus on other strategic initiatives or investments, while the city of Hamburg gains stability and potential growth in its elderly care services sector.
The city of Hamburg can explore new opportunities in managing its elderly care services, potentially expanding or improving them in alignment with its broader health and social care strategies, due to the 'Other' strategic move. With Deutsche Wohnen able to focus on 'Other' strategic initiatives or investments following the sale, both parties stand to benefit from this responsible decision.
