Vonovia launches Veveus to expand real estate service offerings

Vonovia is expanding its business model beyond residential leasing by launching a new service brand, Veveus. Introduced at the Expo Real trade fair, Veveus aims to provide institutional owners and investors with a bundled suite of services, including asset, property, and facility management, as well as investment management.

The company currently manages approximately 75,000 apartments for third parties. By scaling these external services, Vonovia seeks to generate high-margin revenue without the need for additional capital investment in new property acquisitions. The company has set a target for non-leasing business to contribute between 20 and 25 percent of its total adjusted operating result by 2028.

This strategic shift comes as the German real estate market faces challenges from rising financing costs and reduced investment activity. While the company pursues these growth targets, analysts at JPMorgan have maintained an 'Overweight' rating on the stock but lowered the price target from 34.50 to 26.00 euros, citing the ongoing need for portfolio adjustments.