Munich-based residential property firm Domicil Real Estate announced on Monday that it has secured a new €250 mln credit line from insurer Die Bayerische to finance the purchase of new residential assets across the country.
The financing, with a term of six years, further strengthens with partnership between Domicil and Die Bayerische, which in the past have also built together a number of projects valued over €640 mln.
At the same time, the insurance group is also investing €10 mln to take a 5.4% stake in the Domicil business.
‘With the participation in Domicil we are consolidating our partnership and increasing the proportion of real estate in our investment portfolio. We have been working with Domicil for a long time already and with the participation we are utilising the opportunity to take up a stake in a company that has posted strong growth with a sustainable business model,’ explained Thomas Heigl, member of the board of Die Bayerische.
’Residential property is a safe haven in times of crisis and it has become even more attractive in the wake of the coronavirus pandemic. In addition, interest rates are low, thus leading to a rise in demand on the real estate market. Investments in real estate companies are thus of greater interest – and above all in specialist companies which, thanks to their expertise in the field of privatisation, are able to generate a regular cash flow in addition to rental income and play a major role in the retirement provisions of their clients,’ commented Khaled Kaissar, CEO of Domicil Real Estate.
