Vonovia Won't Collect Foregone Rents After German Court Ruling
By Mauro Orru
Vonovia SE said Thursday that it has decided not to collect
foregone rents from its tenants despite a ruling from the German
Federal Constitutional Court that the Berlin Rent Freeze
Legislation is unconstitutional.
The German real-estate company said it would sacrifice up to 10
million euros ($12 million) of legally owed rent.
"We have decided to not claw back any of the foregone rents to
which we would now be legally entitled. Our top priority at this
point are the people who live in our flats in Berlin, and we want
them to be at ease," Vonovia Chief Executive Rolf Buch said.
Mr. Buch conceded that the ruling would create "enormous
uncertainty" for tenants, particularly those hard hit from the
Write to Mauro Orru at firstname.lastname@example.org; @MauroOrru94
(END) Dow Jones Newswires
April 15, 2021 04:10 ET (08:10 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.