Report for the business year 2004

On 17th November 2004 the committee of experts expressed their opinion on the development of the economy as a whole in the annual report 2004/2005. On the one hand, according to this report, the success in the export trade shows that German enterprises have improved their international competitiveness since the mid nineties. On the other hand, however, the continuing low growth rate points to internal economy problems that must be tackled. However, a drastic recovery in German internal economy is still a long way away. For the year 2005 only a very vague prognosis on unemployment can be given because unemployment benefit II was introduced. Without taking this reform into account, the number of the registered unemployed will remain approximately constant in the annual average. However, taking this reform into account, the number of the registered unemployed will especially at the beginning of the new year increase significantly. The situation of the public and municipal budgets still remains in a critical condition. Furthermore, according to the 2004 report, the continous difficult economic situation in the new federal states impedes the economic growth in Germany.

In 2004 the overall ecomomic conditions became worse for housing in the whole of Germany. High unemployment as well as a loss of real income contributed to this development. Many banks cancel their lending commitments for housing companies in East Germany. It is nearly impossible for the housing companies to obtain new credits. Even getting extensions of credits turns out to be difficult. For the new federal states and for the city of Brandenburg in particular, it is becoming even more difficult as they have to cope with the fact that not enough business concerns settle down here and that there is a lack of jobs causing a decrease of the population with dramatic effects for the housing situation. Of the 46.000 flats, 8000 are empty. In Heidelberg and Munich and the area around, in contrast, there is a housing shortage because of the economic growth. As there are so many empty flats in Brandenburg people do not have to compete to get a flat. Therefore, the housing companies cannot earn money and spend this money on the reconstruction of buildings. Since 2004 the Wobra has been counteracting this development with a strong commitment to replan the city. To reduce costs the Wobra had the guts to pull down 500 flats in 2004 and this year we are going to pull down another 400.

The Founding of the Wobra

The Wobra, the city of Brandenburg housing company, was founded in 1991.
The only associate, the city of Brandenburg an der Havel, put in the housing company the main part of her then real estate (ca. 159.000 flats and 600 commercial buildings). By the end of 1991, more than a third of the 16.500 flats and commercial buildings were encumbered with a claim for retransfer.

Today´s Housing Stock
Today the Wobra owns about 7.000 flats and 200 commercial buildings. Furthermore, the Wobra also administers 2.400 flats for other owners. Due to retransfers and sales the Wobra stock could be significantly reduced.

About 45% of the flats and commercial buildings are situated in the historic centre and in the area where in the 19th and 20th century the extension of the city took place, e.g. the Bahnhofs-, Wilhelmsdorfer and Neuendorfer suburb. The stock also includes flats of housing estates from the twenties and thirties of the 20th century (e.g. Görden and Kirchmöser) as well as of the industrial housebuilding in the sixties, seventies and eighties (Brandenburg Nord and Hohenstücken in particular). In addition to this, about 500 flats have been newly built since 1991.

Altogether 22% of the Wobra owned buildings had been built before 1918 and another 30% had been built by 1960. These mainly stone-built houses have for the most part a simple equipment.

The Conditions in the GDR
The GDR policy of town development was guided by the idea of a socialist town, so ambitious programs were launched for the industrial housing construction. At the same time only very few investments were done in maintenance und reconstruction of the old building stock, these investments were even very often prevented. That´s how over 50 years of GDR government, arreas of maintenance costs had been produced, which are now not only in the old building stock of the Wobra, but of the whole city. The aim of the GDR policy of housing was it to destroy the historical and traditional town structures in order to have space to.

Since the founding of the Wobra in 1991, 115 million Euros have been invested in new housing and the reconstruction and modernization of buildings and flats. Therefore, it has been possible to build 500 flats and partly or even fully modernize 1.750 flats up to now.

Since the reunification there have been eight Wobra managers. In 2003 the seventh manager nearly had to make a declaration of bankruptcy. In 2004 the new mayoress Dr. Tiemann asked me if I could besides being manager of the municipal utilities and the public transports, also rebattle the residential area of Brandenburg. In 2003 the Wobra had a loss of 13 million €. In 2004 we managed to reduce the costs by wage cuts of 33%. That is how we were able to save the company. In 2004 we did not have a loss, but a 12 million € property increase. This now gives us the opportunity in 2005 to reconstruct buildings and areas.
Three months ago our company moved from a Plattenbau (GDR concrete building) into a historic building in the centre of the city. This stands for the new image and slogan of the Wobra: Wohnen in Brandenburg, the art of living.

The Task

The Wobra takes up the challenge to ambitiously improve the in some parts unsatisfying housing conditions of some people in Brandenburg. The basic task for the Wobra is to offer housing for large sections of the population.

Improvement of the home comfort
Basically, the Wobra aims to improve the comfort with the following measures:

• reconstruction and modernization of buildings and flats to meet the requirements of today´s users
• including not only the flats and buildings but also the whole residential area, for example, with its parcs into the modernization
• thorough handling of the fabric maintaining and reconstructing architectural and urban planing qualities
• additional offers such as gardens for tenants, communal rooms, playground and parking spaces

The Aim

Together with other housing companies, the local authorities, and its tenants, the Wobra is making every effort to contribute to the town development of Brandenburg.

Brandenburg an der Havel is an attractive place of residence offering a vast potential for any form or concept of housing. The aim of the Wobra is it to even enlarge this diversity and to provide people looking for a flat with an interesting offer for a reasonable rent.

As an outlook for housing in Brandenburg I would like to tell you about our latest project. In the historic centre of Brandenburg around the former monastery, which is a state museum today, and next to the Katharinenkirche we have at the moment a rather rotten residential area with 350 flats. By inviting tenders we are looking for an architect who is able to reconstruct the atmosphere and life of this area before the war: an area where people want to stroll and saunter.