Allen & Overy advised Vonovia SE on a secured financing arrangement for EUR 500 million with a 10-year term. Pbb Deutsche Pfandbriefbank AG and Landesbank Baden-Württemberg (LBBW) each provided 50% of the commitments to the listed residential property company. Vonovia will be using the funds for general business purposes. The loan is secured by a residential property portfolio in Dresden with total rented space of approx. 800,000 sqm, comprising approx. 13,400 residential units and over 200 commercial units.
"By concluding the secured financing on attractive terms, we were again able to demonstrate the advantages of our financing strategy, which is based on a good balance of secured and unsecured instruments," said Thorsten Arsan, Head of Corporate Finance at Vonovia SE. "We value the reliable and results-oriented working relationship that we have established with both pbb and LBBW."
Dr Olaf Meisen, real estate financing expert at Allen & Overy, adds: "We are delighted that in arranging this major transaction, we are further building on our long-standing relationship with Vonovia SE. In the context of such transactions, it is important to have a deep knowledge of the group in question; it is crucial that a perfect match between the diverse requirements of the various types of financing within the group is achieved. We are pleased that Vonovia appreciates our expertise and is placing its trust in us."
Vonovia SE owns around 400,000 residential units in all the attractive towns, cities and regions in Germany, Austria and Sweden. It is also responsible for managing around 84,000 residential units. The portfolio value is approx. EUR 41.9 billion. The Bochum-based company was first listed in 2013, and has been included in the DAX 30 since September 2015. Vonovia SE is also listed in the international indices STOXX Europe 600, MSCI Germany, GPR 250 and EPRA/NAREIT Europe. Vonovia employs around 9,900 staff.
The Vonovia team comprised Thorsten Arsan, Dr Werner Gumpp, Wolfgang Essmann, Uta Scharfenberg, Anika Marker and Frank Reifenrath.
The Allen & Overy team comprised partner Dr Olaf Meisen and counsel Stefan Kuhm (both real estate financing, both Frankfurt).
