Vonovia, Germany's largest residential real estate company, is on the verge of completing the sale of its care division, which is located within its subsidiary Deutsche Wohnen. According to the "Handelsblatt" on Monday, citing sources close to the negotiations, the sales agreement is expected to be signed by summer 2024.

The sale of the division, which primarily includes nursing homes, is to take place in several tranches. A planned block sale previously failed due to financing issues. As early as the end of April, Vonovia had announced its intention to sell in individual packages.

During the presentation of the half-year figures, the company announced that six nursing homes had already been successfully sold. Vonovia expects the sale of the entire discontinued business segment to be completed by December 31, 2024, at the latest.

Vonovia had taken over the care sector as part of the acquisition of Deutsche Wohnen in 2021, but later decided to part with this business segment to refocus more on its core business in the residential real estate sector.

The planned sale is being closely monitored by market observers, as it is an important step for Vonovia to relieve its balance sheet and strengthen strategic focus. The exact financial details of the sale and the involved buyers have not yet been disclosed.

The decision to sell the division in tranches highlights the complexity of the transaction and the challenges associated with large corporate sales in a sensitive market segment such as healthcare.

The successful completion of the sale is seen as a positive signal for Vonovia's future direction, especially given the challenging economic conditions and the difficulties in the real estate sector.