Deutsche Annington sets July 22 deadline for CMBS repayment

German housing group Deutsche Annington Immobilien has unveiled plans to fully repay its collateralised real estate funding notes on July 22.

Deutsche Annington, which raised nearly €575 mln last week in an Initial Public Offering on the Frankfurt stock exchange, said that it will move forward the repayment of the German Residential Asset Note Distributor (GRAND) CMBS vehicle to next week, instead of October.

GRAND was originally created in 2006 with the issue of €5.8 bn of notes. About €3.8 bn remains outstanding.

The company will partially fund the repayment with €2.3 bn of a €2.5 bn term loan granted in June by banks JP Morgan and Morgan Stanley Bank International. The term loan will be refinanced with the issue of unsecured bonds, it added. 'The company is currently conducting investor meetings in preparation of an issuance,' Deutsche Annington said.

The decision follows the refinancing of the facility at end 2012 in Europe's largest residential refinancing ever. The five-year restructuring plan postponed the maturity of the facility to 2018 and involved a €504 mln equity injection from UK private equity firm and major shareholder Terra Firma.

The group of noteholders comprises BayernLB, ING Investment Management, JP Morgan, Landesbank Baden-Württemberg, Pimco and Standard Life Investments.

Deutsche Annington was established in 2001 and is the owner of 180,000 residential units across Germany.