Dechert LLP advised Deutsche Real Estate Funds (DREF) in connection with the issuance of its second bond in a private placement to fund the purchase and refurbishment of five student residences, comprising 1,100 units for students in Berlin, Halle, Ludwigsburg, Siegen and Stuttgart. The bond with a volume of €63.5 million has a seven-year term to maturity and bears interest at a rate of 4.5 percent per annum. It is secured by senior registered land charges and subscribed to by large German institutional investors.

DREF specializes in property investments with a particular focus on student housing, and covers the entire value-added chain from the selection of properties through financing to modernization and subsequent management.

The European multidisciplinary Dechert team, led by Frankfurt partners Achim Pütz (Financial Services) and Dr. Markus Friedl (Corporate), advised on the emission structure and formation of the securitization entity in Luxembourg to accomplish this successful bond placement as well as to other Luxembourg law issues. The team also included Luxembourg partner Jean-Louis Frognet and associate Laura Rossi (both Financial Services).

Read the full company press release, "DREF places 63.5 million euro bond."

Read the release in German (PDF), “Dechert berät DREF bei Anleihenplatzierung in Höhe von €63,5 Millionen“.