Vonovia Expropriation Plan Would Hit Pension Funds, Not Just Investment Firms

The proposed socialisation of large private housing companies sits at the centre of Berlin's coalition negotiations, with Die Linke, the Greens and the SPD agreeing in principle that firms owning more than 10,000 Berlin apartments would be expropriated, with total compensation capped at 16 billion euros. Each affected company could keep a base of 10,000 apartments. Die Linke has frequently framed the debate around BlackRock — party leader Ines Schwerdtner accused Chancellor Friedrich Merz of fearing for his "BlackRock friends" — but a closer look at ownership structures tells a different story. According to company data, Norges Bank, which manages the Norwegian sovereign wealth fund, is Vonovia's largest single shareholder. The Dutch pension fund ABP is also among the institutional investors. At Heimstaden Bostad, which holds roughly 20,000 Berlin apartments, Swedish pension fund Alecta owns 38.7 percent of the capital, insurance group Folksam a further 18.9 percent, and the Swedish state pension authority Pensionsmyndigheten 2.1 percent. German professional pension schemes — covering doctors, lawyers and architects — also hold Berlin housing stakes; a November 2022 GSW publication listed Ärzteversorgung Westfalen-Lippe with a 4.84 percent stake. Real estate lawyer Dr. Nadejda Kysel of Advant Beiten told the paper that investors are already discussing portfolio splits or sales, though discounts make precautionary selling unattractive. Her warning was direct: "If a fund incurs a loss, the pension goes down."