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 coronavirus pandemic.


Write to Mauro Orru at; @MauroOrru94


(END) Dow Jones Newswires

April 15, 2021 04:10 ET (08:10 GMT)

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