German asset manager and developer Aurelis Real Estate has secured a syndicated loan of 鈧�530 mln with pbb Deutsche Pfandbriefbank and an additional lender.
German asset manager and developer Aurelis Real Estate has secured a syndicated loan of 鈧�530 mln with
pbb Deutsche Pfandbriefbank and an additional lender.
Pbb, which acted as lead arranger and agent for the transaction, provided 鈧�430 mln.
'We have made use of the favourable interest rate environment and arranged for an early refinancing of our bank loans that mature in December 2016,' commented Joachim Wieland, CEO of Aurelis. 'Furthermore, this refinancing provides Aurelis with additional entrepreneurial and financial flexibility for acquisitions and investments into its rental and development portfolio.'
Aurelis, formerly part of Deutsche Bahn, is held by funds of New York-based investment group Grove International and is preparing the largest IPO in the German real estate market at present.
In 2013, Aurelis earned 鈧�358.2 mln from the sale of new developments and generated rental income of 鈧�70.2 mln through its portfolio of commercial properties with a combined 11 mln m2 in large German cities.
Investment bankers claim the IPO should value Aurelis at well over 鈧�1 bn.
IPO wave
A booming stock market is encouraging German real estate companies to go public, but experts believe the flood of new IPOs could cause a temporary dip in the share prices of established listed firms. That would offer buyers a window of opportunity, according to market experts.
'Last year, the Prime Real Estate index gained 38%, while the German key index, the DAX, only returned 2.98%,' noted Stefan Mitropoulos, analyst at Landesbank Helaba in Frankfurt.
Institutional investors in particular have been gorging on property stocks. 'With bond yields close to zero, property stocks with dividend yields above 2.5% are very attractive to have,' said Georg Kanders, sector analyst at Bielefeld-based private bank Bankhaus Lampe.
Besides Aurelis, Ado Properties and BGP Investment are at an advanced stage with preparations for initial public offerings due later this year, according to investment bankers in Frankfurt familiar with the cases.
