Gebhard Real Estate AG places EUR 20 mln mortgage loan

German company Gebhard Real Estate has placed its first mortgage loan. The EUR 20 mln transaction marks the entry of Gebhard Real Estate into the market for mortgage loans secured by land register entries.

The loan was placed by Gebhard Bank in two tranches, one of them a short-term tranche with a three-year term and a fixed interest rate of 6.75%, the other one a medium term tranche with a seven-year term und a fixed interest rate of 8.25%. Interest on each will be distributed on a quarterly basis. The issue proceeds will help to finance the acquisition of residential portfolios in Germany. At the end of the term, the investor will be paid back 100 percent of the committed nominal capital. Gebhard Real Estate plans to invest EUR 100 mln in additional portfolio acquisitions in the short and medium term and currently holds a portfolio of 810 housing units nationwide for an investment volume of EUR 35 mln.