DIC Asset has signed a €960 mln credit arrangement for its commercial portfolio with Deutsche Hypothekenbank, Berlin Hyp and HSH Nordbank.
The new loan, with an overall term of seven years, will be used to prematurely repay the existing financing arrangements signed with several banks. The arrangement was underwritten by Deutsche Hypothekenbank (€510 mln) as joint lead manager as well as by Berlin Hyp (€250 mln) and HSH Nordbank (€200 mln).
The deal represents the largest financing transaction in Deutsche Hypothekenbank's history.
'This financial transaction, which is quite significant for us, significantly strengthens our future profitability and the cash flow from our commercial real estate portfolio. The new financing structure and the funds it releases will enable us to expand the company's planned growth and to accelerate it further in 2017,' commented Sonja Wärntges, CFO at DIC Asset.
DIC Asset noted that the new arrangement lowers the interest rate on the commercial portfolio's bank loans to circa 1.7%, a drop of 170 basis points compared to the previous financing conditions. The amortisation rate falls from around 3% to 1% p.a. The existing financing arrangements are expected to be almost entirely repaid in January 2017.
Jörg H Becker of Bögner, Hensel and Partners provided legal counsel to DIC Asset for the deal.
