The board of German listed residential property group Deutsche Wohnen has voted in favour of a capital increase to finance the EUR 1.2 bn acquisition of the Baubecon portfolio.
The board of German listed residential property group Deutsche Wohnen has voted in favour of a capital increase to finance the EUR 1.2 bn acquisition of the Baubecon portfolio.
The company plans to raise a total of EUR 425-475 mln through the issue of around 44 million new shares. The subscription price will be set by June 19, the company said, with the subscription period beginning on June 12 and running until June 25.
About 75% of the proceeds will be used for the Baubecon purchase, while the rest is expected to help fund 'additional acquisitions for which the company is in advanced negotiations'.
Credit Suisse and UBS Investment Bank are acting as joint global coordinators and joint bookrunners. Co-lead managers are Bayerische Landesbank, DZ Bank German Central Cooperative Bank, Kempen & Co and UniCredit Bank.
Deutsche Wohnen announced in early June that it had won the bid to acquire the Baubecon portfolio of 23,500 housing units in Germany in a deal worth EUR 1.2 bn.
