Maximum profits through mass-sells out of rental homes

The sells raised by 44 % in 2003. In January 2004 Viterra topped its escape from the regional market by selling 17.000 flats to an investment group. They plan to sell all these flats a second time. “Sell the houses at the bad markets to speculators and the tenants, buy houses from public companies at better markets and sell them at good prizes”, this is how Viterra wants to continue the raise of profits. Its trust holder E.on – a Germany based transnational energy trust – plans to sell the whole branch as soon possible.

Today Viterra still controls 152 000 flats, most of them industrial homes, originally built with subsidies from the state. Many tenants fear to loose their homes after the second sell to families, who which to live in the flats by themselves. The current strategy is the sell of small multi-storage houses with small flats to big families (many of them immigrants). The new owners combine 2 and more of the flats and have the right to quit the original tenant. Many of the buyers can not afford the financing or do not know how to manage the real estate.

Another danger are the disinvestments in the attacked housing stocks. Many of them are situated in the poorest neighborhoods with a growing degree of vacant houses. Tenants movements and the regional state try to force Viterra to come to serious negotiations about a more social way of selling. But up to know they deny any responsibility.

Source: Knut Unger

Tags: