WOBA DRESDEN adjusts rents
2/22/2007
On April 1, 2007, rents for approx. 3400 residential units, corresponding to roughly 7 percent of the units in WOBA DRESDEN's inventory, are being adjusted.
Rents are being adjusted by just under 3 percent on the average. After adjustment, these rents will still be clearly under the upper limit for comparable standard rents in the area, or the rent index as it is called. The scale of adjustment lies within the range of the Social Charter agreed upon by WOBA DRESDEN at the time of sale, which protects tenants over and above the rent law. Overall, rents are being adjusted by about EUR 45,000. This adjustment amounts to less than half a percent of the rental income from the entire WOBA inventory.
WOBA DRESDEN needs to adapt to market requirements in order to provide a competitive offer to its tenants, just like other lessors whether private or municipal associations or private individuals.
As a municipal association, WOBA DRESDEN has made similar adjustments at regular intervals in the past, as have other housing providers. This would continue to be the case, since municipal associations have an obligation to carry on business in a manner that is economically viable.
WOBA DRESDEN dismisses speculations of any connection between these rent adjustments and privatization. WOBA DRESDEN is in favor of convening a meeting of the Housing Advisory Board for clarification.
About GAGFAH S.A. and the GAGFAH GROUP
With a current estimate of about 167,000 apartments GAGFAH S.A., the parent company of the GAGFAH GROUP, is the largest listed residential real estate company in Germany. The business segments include purchase, long-term management, and the sale of apartments on a small scale. The most important group companies in the GAGFAH GROUP are GAGFAH, NILEG, WOBA DRESDEN and Acquisition 1. GAGFAH S.A. also has a share of over 92 percent in GBH Heidenheim. The GAGFAH GROUP is striving for further growth by offering attractive living space, by steadily improving customer service and through additional acquisitions. 95 percent of the revenue is generated by leases. The GAGFAH GROUP assumes responsibility, for instance, via special protective rules in favor of its tenants and through the GAGFAH Foundation "People and Living".