BERLIN (dpa-AFX) - The state of Berlin is buying around 4,500 apartments from the Vonovia Group. They are located in the district of Lichtenberg and will be taken over by the state-owned company Howoge together with the associated land, as announced by the Governing Mayor Kai Wegner (CDU) on Wednesday in the Rotes Rathaus.

In addition, the municipal company, together with Berlinovo, which is also state-owned, is acquiring 6.9 hectares of potential building land in the Buch district and in Lichtenberg from the real estate group. The entire deal costs around 700 million euros. It is being financed by the two state companies from their own funds and borrowed capital.

Berlin has long been pursuing the goal of expanding its municipal housing stock not only through new construction, but also through acquisitions. In this way, the Senate hopes to have more influence on the tight housing market and slow down the rise in rents. Currently, a good fifth of the approximately 1.7 million rental apartments in the capital are in municipal hands./kr/DP/ngu