Rivalry drives Germany's 2 largest landlords to overseas expansion

Berlin

GERMANY'S two largest landlords are expanding, though their dominant position means the rivalry may move beyond the country's borders.

Deutsche Wohnen AG, one of two companies that together own about 500,000 German apartments, is trying to get a foothold in Austria, another country with a high proportion of renters. The landlord's bid for Vienna-based Conwert Immobilien Invest SE is unlikely to be its last foray across the border, according to Peter Papadakos, an analyst at Green Street Advisors in London.

"It's the next logical step," Mr Papadakos said. "Growing cities with a deep volume of ex-social housing stock would make sense: in Austria, the Netherlands, even the Czech Republic."

Deutsche Wohnen has been locked in a race for the top spot with Deutsche Annington Immobilien SE, Germany's largest residential landlord, since Deutsche Annington's 2013 initial public offering. Expanding abroad would help Deutsche Wohnen continue to narrow the gap after the Berlin-based company almost doubled the number of its apartments in the past two years…