A team led by Dr. Peter Zimmermann and Dr. Thorsten Kuthe, both partners of business law firm Heuking Kühn Lüer Wojtek, legally advised Deutsche Real Estate Funds (DREF) on issuing a bond of EUR 63.5 million. DREF intends to use the proceeds to acquire and renovate five student dormitories. The buildings with 1,100 units are located in Berlin, Halle, Ludwigsburg, Siegen, and Stuttgart.
The bond has a maturity of seven years, with an annual interest rate of 4.5 percent. The paper is secured by senior land charges and was subscribed by large German institutional investors. In order to facilitate the subscription of DREF bonds, the company has established an issuing platform managed by Hauck & Aufhäuser Alternative Investment Services, a subsidiary of Frankfurt-based private bank Hauck & Aufhäuser. The platform is designed to enable needs-based structuring and rapid implementation of bond issues.
DREF is one of Germany's largest private owner and operator of student accommodation. By year-end, the company plans to increase its portfolio from 4,000 to more than 6,000 units. The real estate company has already secured an additional 1,500 units. The Issuer is part of a Luxemburg-based group and is a wholly owned subsidiary of Deutsche Real Estate Funds S.A.
The team led by Dr. Thorsten Kuthe and Dr. Peter Zimmermann had advised Deutscher Studenten Wohn Bond on issuing the first bond in June 2015 and on its increases in November 2015.
Counsel to Deutscher Studenten Wohn Bond I S.A.
Heuking Kühn Lüer Wojtek:
Dr. Thorsten Kuthe (Lead Capital Markets),
Dr. Sebastian Stindt (all Capital Markets), all Cologne
Dr. Peter Zimmermann (Lead Real Estate),
Kathrin T. Paulet (Real Estate), both Düsseldorf
Dr. Christoph F. Wetzler,
Dr. Till Naruisch, LL.M. (both Finance),
Klaus Weinand-Härer (Tax), all Frankfurt