The DVI Group, an owner-managed real estate investor and manager of residential and office real estate in Germany, has announced the issue of its first listed bond.
Marketing of the bond started with a virtual investor roadshow in December and resulted in the placement of €350 mln to 33 institutional investors from 14 European countries. Deutsche Bank acted as sole global coordinator and, together with UniCredit, as joint bookrunners.
The bond proceeds will primarily be deployed to finance new acquisitions of residential and office real estate in large German cities with a positive economic environment. Secondly, a portion of the proceeds is destined to the early repayment of existing bank loans thereby increasing DVI’s portfolio of unencumbered real estate assets.
The five-year bond will pay an annual interest coupon of 2.5% and will be the first of a series of bond emissions planned for the future, the company said.
In 2021, DVI acquired real estate in Berlin, Erfurt, and Mainz with a rental area of over 80,000 m2, bringing its total portfolio of income-yielding real estate to 790,000 m2.
