Pbb, Berlin Hyp, LBBW provide €241m refinancing to DIC Asset

Lenders Berlin Hyp, pbb Deutsche Pfandbriefbank and Landesbank Baden-Württemberg (LBBW) have provided a €241 mln loan to DIC Asset to refinance a commercial real estate portfolio.

Berlin Hyp contributed €95 mln to the facility, pbb Deutsche Pfandbriefbank participated with €76 mln and LBBW with €70 mln.

The seven-year financing was concluded in December 2013; pbb acted as lead manager and mandated lead arranger, Berlin Hyp and LBBW were mandated as co-arrangers.

Together with the issue of 6.2 million shares and 16.6 million share rights carried out last month, DIC Asset has been able to refinance its €481 mln acquisition of the Unite office-led portfolio with a long-term horizon while significantly reducing leverage.

The German listed property company first announced in November that it was to raise its stake in the Unite package from 20% to 94% as part of a strategy to streamline the business and further diversify its portfolio.

Frankfurt-based DIC bought a majority interest in the €481 mln package comprising 54 office and commercial properties from co-owners DIC Capital Partners and Deutsche Immobilien Chancen, its majority shareholder.

The Unite portfolio is broadly diversified in terms of regions and tenants, and generates annual rental income of around €28 mln. The package, largely consisting of offices, boasts a weighted average lease term of five years and an occupancy rate of around 88%.

DIC acquired an initial 20% stake in the portfolio in 2007, in a joint venture with its largest shareholder, Deutsche Immobilien Chancen, and DIC Capital Partners, which owned 50% of the portfolio.