Members buy cooperative shares which constitute the eG’s equity, refunded on exit. ~48 German housing co-ops run their own savings institutions (Spareinrichtungen) for working capital.
This is the ~7% member-equity tranche of the grassroots capital stack and the precondition for kfw-134 (which finances the purchase of these shares by a natural-person member of an eG).
Related
- eg-cooperative — the entity whose equity these shares constitute
- kfw-134 — federal loan financing the share purchase