Vonovia confident on deleveraging path as rates rise, CEO says

DUESSELDORF, June 17 (Reuters) - Vonovia, Germany's largest real estate group, which is burdened by billions in debt, is on track to reduce its liabilities despite rising interest rates, its new CEO, Luka Mucic, told journalists on Tuesday evening.

"We have factored that into our planning," said Mucic in reference to the European Central Bank's latest interest rate decision, adding that Vonovia can achieve its target of a 40% loan-to-value (LTV) ratio by the end of 2028.

The LTV ratio most recently stood at 45.4%.

Mucic has made reducing Vonovia's debt one of his priorities since taking over in January, and he has also identified parts of the real estate portfolio that could potentially be sold.

Following its rapid expansion in the past, which included the acquisition of competitor Deutsche Wohnen, Vonovia is carrying debt totalling around €40 billion ($46.42 billion).

However, Mucic emphasised that there will not be any fire sales in light of the recent interest rate rise.

($1 = 0.8616 euros)

(Reporting by Matthias Inverardi, Writing by Miranda Murray, Editing by Linda Pasquini)