Adler Group S.A. welcomes Federal Constitutional Court's decision to annul the Berlin rent cap

Adler Group S.A. welcomes Federal Constitutional Court's decision to annul the Berlin rent cap

- The Federal Constitutional Court declares the Berlin rent cap unconstitutional and ineffective

- The decision restores confidence in Berlin as a location in the interests of the city and its residents

- New construction activities of Adler Group will create additional affordable housing in German most densely populated cities

Berlin, 16 April 2021 - The Federal Constitutional Court in Karlsruhe has ruled that Berlin's rent cap is unconstitutional, thus declaring the highly controversial Act on Rent Restrictions in the Housing Sector in Berlin (MietenWoG Bln) incompatible with the Basic Law and therefore null and void. In the opinion of the Second Senate of the Federal Constitutional Court, the state of Berlin had no right to limit rent levels by means of a so-called "rent cap" in the German capital due to a lack of legislative competence, as the federal legislation had exhaustively regulated rent law in the German Civil Code (BGB).

Adler Group S.A. ("Adler Group") welcomes the quick and unambiguous decision of Germany's highest court, which restores the clarity, legal certainty and confidence in the housing market in Berlin which is in the interests of tenants, housing providers and investors that are crucial for new housing construction.

The Adler Group has always pointed out that the Berlin rent cap does not contribute to a sustainable, responsible investment climate needed for continued investments in the German housing sector and new construction.

In the coming years, the Adler Group will build more than 10,000 new apartments in Germany's top 7 cities, as well as make substantial investments in the refurbishment and energy modernization of its extensive housing stock in the interests of its many tenants. The Adler Group will continue to do its part and create affordable and attractive living spaces in order to meet the steadily increasing demand for housing and maintain existing housing at high energy and technical standards.

The Adler Group will offer its tenants individual solutions for repayments.

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